THE JOURNAL FOR COMMERCIAL AIRCRAFT BUSINESS • ISSUE 124 • JUNE/JULY 2019

AIRCRAFT COMMERCE
THE JOURNAL FOR COMMERCIAL AIRCRAFT BUSINESS
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NARROWING THE GAP

THE EFFECTS OF STEADY TRAFFIC GROWTH &
EVOLUTION OF SCOPE CLAUSES

The shortage of PW2000 & RB211-535 engines I Technologies to improve ground operations
Cabin wireless infrastructure I The CFM & IATA agreement: initial assessment
Techniques for improving mechanic productivity I Cherry picking 767-300ERs & A330s for freight conversion
ISSUE 124 • JUNE/JULY 2019

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Editor’s Comment
JUNE/JULY 2019 As would be expected, continued growth requires airlines to provide higher seat capacity
through optimal service frequencies and larger aircraft types. The US regional airline
EDITOR
CHARLES WILLIAMS - CHW (+44 1403 230
network has developed steadily since deregulation in 1978. Hub-and-spoke style networks
302) quickly materialised. Services that started with small turboprops of about 20 seats
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gradually morphed into an increase in frequencies and then an increase in average aircraft
STAFF WRITER
ROB HALL (+44 1403 213 112) capacity during the 1980s.
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MICHAEL CANDLER (+44 1403 213 111)

michael@aircraft-commerce.com The advent of regional jets (RJs) in the mid 1990s was soon followed by pilot union scope
PRODUCTION EDITOR clauses that have since limited the change to a larger number of bigger RJs. The change in
GEORGIA BIRRI
regional airline fleets has only been permitted to change to larger types in greater numbers
SALES DIRECTOR
KAT RONALDSON (+44 1403 213 117) in line with the growth of major airline narrowbody fleets, and then only after careful
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negotiation. The sole purpose has been to limit the number of flightcrew operating for the
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by major carriers at higher levels of remuneration.
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Examination of capacity employed on US domestic routes by the major carriers and their
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AIRTEAMIMAGES regional airline partners to and from major hubs over a 10-year period clearly shows a
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portion of capacity. This is especially the case on routes with relatively low levels of
demand that still nevertheless require multiple daily frequencies.

This process of transferring capacity would doubtless be accelerated because regional

airline pilot salaries are about one third of major airline pilot salary scales. This keeps the
pilot cost per available seat-mile (ASM) across an entire route network about similar
Aircraft Commerce (ISSN 1463-1873, USPS No: 023- between A320/737 narrowbodies operated by the majors, and the 50-seat CRJ200s and
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Contents
MAIN FEATURES
RB211-535 & PW2000 shortage

4I
AIRCRAFT TRADING There is a shortage of time-continued PW200 & RB211-535
4 Factors in the RB211-535 engines. The economics and the options of acquiring
& PW2000 shortage serviceable units are analysed.

FLEET PLANNING
12 US airline scope clauses
& fleet planning US regional scope clause contracts

12 I
US airline scope clauses are due for renegotiation in
2020. Traffic growth, route network development and
AIRLINE OPERATIONS a drive for lower unit costs indicate today’s scope
22 Honeywell is reseller for
clauses’ are out of date
SmartSky ATG system
Solutions for ground operations

26 I
23 Solutions to improve ground Inefficient ground operations are costly for both the
operations airport and the airline. Some of the latest solutions to
improve on-time performance and turnaround times
29 Opportunities of the Pilot
are investigated. These include artificial intelligence
for turnaround management and self-taxi equipment.
Common Project for airlines

AIRLINE REVENUES
CFM & IATA agreement appraised

36 I
26 Cabin WiFi infrastructure An initial evaluation of the landmark agreement
between IATA and CFM, and implications for
aftermarket services and the CFM56 MRO market
MAINTENANCE &
ENGINEERING
35 Iberia Maintenance firm
firm in RB211-535 MRO
Solutions for labour productivity

46 I
38 Initial assessment of the CFM Labour efficiency and how an MRO should focus its
attention to reduce cost per man-hour to improve
& IATA agreement
labour productivity and costs

46 Systems for labour

productivity

Selecting 767 & A330 for conversion

54 I
FREIGHT BUSINESS The 767-300ER & A330-200/-300 are in high demand.
The criteria for selecting the best conversion
candidates are assessed.
57 Cherry picking the best
767-300ER & A330-300s for
freighter conversion.
4 I AIRCRAFT TRADING & THE AFTERMARKET

The 757’s popularity as a freighter, the closure and inactivity of several

engine shops, and the low production rates of parts have all combined to
produce a shortage of time-continued PW2000 & RB211-535 engines. The
economics of the options for acquiring serviceable units are considered.

Factors affecting the supply

of PW2000 & RB211-535
engines in the aftermarket
T
he 757-200 has proved to be by smaller carriers, including Blue Dart, engineering support, and engine
popular. Of the 1,039 civil Cargojet, SF Airlines, China Postal and maintenance is provided by some of the
aircraft built, 984 were the -200 Morningstar Express. larger 757-200 and -300 operators. The
series and 55 were -300s (see The factory-built freighter has not remaining active 757-200/-300 passenger
table, page 5). The aircraft has not been been available since 2005. Conversion fleet is concentrated with a few airlines,
manufactured since 2005, and just over programmes were available from Boeing including the three US majors: American,
600 aircraft are left in active service. and Precision Conversions. Conversion Delta and United. There are also a few
More than half of these are freighters. rates peaked at 25 aircraft in 2011 and smaller airlines providing some levels of
The continued operation of remaining reached 19 in 2018. technical support. These include ex-
757s relies partly on the availability of Precision Conversions is now the only operators, such as Iberia which offers
good quality RB211-535 and PW2000 active passenger-to-freighter (P-to-F) RB211-535 maintenance.
engines, and technical support for them. conversion programme. It modified 16 The retirement of large numbers of
aircraft to freighter in 2018, and expects passenger-configured 757-200s and -300s
to convert at least 12 in 2019. Brian raises the issue of what technical support
Continued 757 operation McCarthy, vice president of sales at will remain available to potential
The youngest 757s in operation are Precision Conversions, estimates that it operators of used passenger aircraft and
14 years old. The oldest examples in could convert a further 45-60 aircraft freight carriers.
active service are an RB211-535E4- from the 290 passenger-configured and The fleets of RB211- and PW2000-
powered freighter built in 1983, and six combi aircraft that are still active. powered 757-200s are analysed in detail.
operated by FedEx, and a PW2037- There are also more than 70 stored
powered freighter built in 1984, and aircraft, some of which could potentially
operated by Air Transport International be suitable conversion candidates. It 757-200 & -300 fleet
(ATI). seems probable that once all conversions The 757-200 and -300 fleets can first
The 757 has proved particularly are completed, most of the fleet will be be split between RB211- and PW2000-
popular as a freighter, which will give it RB211-powered. powered aircraft. The 984 757-200s built
longevity, and continue to stimulate Some of the 22 aircraft in special roles are divided between 573 equipped with
demand for all levels of technical support could also be conversion candidates. RB211-535 engines, and 411 PW2000-
and engines. Of the 307 active freighter The demand for 757 freighters will be equipped aircraft.
aircraft, 229 are converted aircraft, and high. It is in a class of its own, with a There were also 39 RB211- and 16
78 are factory-built freighters. The 757- gross structural payload of up to PW2000-equipped 757-300s produced.
200 freighter fleet split by engine type is 84,000lbs and a total available volume of Of the 573 aircraft built with RB211
208 RB211- and 99 PW-2000 powered 8,390 cubic feet. As well as steady traffic 757-200 engines, there are 16 with
aircraft. growth, especially in markets such as e- experimental, special VIP and
Given the age of the oldest aircraft commerce and China, there is also the government roles or are in an air taxi or
and typical rates of utilisation, it is prospect of existing 757 freighters business jet configuration (see table, page
possible for the youngest aircraft to retiring, some of which are 36 years old. 5). These account for 3% of the aircraft.
remain in service for another 20 years. The three main issues that affect the This leaves 557 757-200s in passenger
More passenger aircraft are likely to appetite for converting more of the and freight roles.
be converted. The 757-200 is a unique available 757-200s, or continuing their To date, seven RB211-equipped
type, and proving popular with freight operation as passenger aircraft, are: the aircraft have been written off, while
carriers. The 757-200 freighter fleet is maintenance status of the airframe; the another 134 have been retired, and 55 are
dominated by the express package availability and maintenance status of in storage. These 196 aircraft account for
consolidators. DHL, FedEx and UPS engines on the market; and the long-term 34% of aircraft built (see table, page 5).
operate more than 225 aircraft between availability of technical and maintenance This leaves 361 757-200s in active
them. All three operate a mixed fleet of support for the RB211-535 and PW2000 service in a mixture of passenger, combi
RB211- and PW2000-powered aircraft. over the next 20 years. and freighter configurations (see table,
More than another 80 are operated Airframe maintenance and page 5). That is, 63% of the RB211-

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 5 I AIRCRAFT TRADING & THE AFTERMARKET
equipped 757-200 fleet is still active. 757-200 & -300 FLEET SUMMARY
Of the 411 PW2000-powered
aircraft, five have experimental, VIP or RB211-535-powered fleet
government roles. These account for just 757-200 757-300
over 1% of PW2000-equipped 757-200s. Engine type RB211-535C RB211-535E4 RB211-535E4B Total RB211-535
This leaves 406 aircraft in passenger and E4B/E4C
freighter roles. Special role aircraft
Two aircraft have been written off, 17
are in storage, and 145 have been retired. Experimental, VIP, 1 12 3 16
govt, special role
This group of 164 inactive aircraft (see
table, this page) represents 40% of the Active aircraft
PW2000-equipped 757-200 fleet.
This leaves 242 aircraft in service in Passenger 75 73 148 39
passenger, combi and freighter Combi 5 5
Factory-freighter 3 40 43
configurations (see table, this page). This Converted freighter 5 140 20 165
is 59% of the PW2000-powered 757-200
fleet. Sub-total active 5 223 133 361 39
There are thus 290 active aircraft in
Inactive aircraft
passenger configuration, and another six
active combis equipped with both main Storage - passenger 17 30 47
engine types. There are a further 307 Storage - combi 3 3
active aircraft operating as freighters with Storage - freighter 5 5
both main engine types, accounting for
Retired 34 56 44 134
most of the active 757-200 fleet. The Written off 4 3 7
total fleet of active aircraft is 603 units.
Sub-total inactive 34 85 77 196

Total fleet 40 320 213 573 39

RB211-535 fleet
The RB211-535 fleet can be split
PW2000-powered fleet
between two main variants. The RB211-
757-200 757-300
535C was the original RB211 variant,
Engine type PW2037 PW2040 Total PW2043
and powered 40 aircraft. Of these, 34
were operated by British Airways, and Special role aircraft
were subsequently converted to freighter
in the late 1990s and operated by Experimental, VIP, 5 5
European Air Transport (EAT), DHL’s govt, special role
European subsidiary. Five of the 34 Active aircraft
freighter aircraft are still active, but are
due to retire over the next few years, and Passenger 133 9 142 16
the other 29 are already retired. There Combi 1 1
Factory-freighter 35 35
were another six aircraft with -535C
Converted freighter 51 13 64
engines. Five are retired, leaving one
active aircraft in a special role. Sub-total active 185 57 242 16
This leaves 533 757-200s with two
variants of the RB211-534E4. Excluding Inactive aircraft
the 15 aircraft in special roles, the Storage - passenger 1 12 13
remainder of aircraft built are sub- Storage - combi
divided between 308 with -535E4 engines Storage - freighter 1 3 4
and 210 with -535E4B engines. The main
Retired 138 7 145
difference between the -535E4 and
Written off 2 2
-535E4B is the thrust ratings of 40,100lbs
and 43,100lbs. Sub-total inactive 142 22 164
The -535E4 fleet includes 223 active
aircraft, 25 stored aircraft, 56 that have Total fleet 332 79 411 16
been retired, and four that are written off.
Clearly the active fleet provides potential
aircraft for continued operation and The stored group of 25 aircraft accumulated more than 70,000 flight
freighter conversion. Some of the 80 includes 17 passenger examples, eight of hours (FH) and about half have
stored and retired aircraft may also be which were retired in 2018 and two that accumulated more than 30,000 flight
possible conversion candidates, or have were retired during 2019. Two are now cycles (FC).
engines and components worth acquiring. due to be converted for SF Airlines in The -535E4B fleet totals 210 aircraft.
The active fleet of 223 comprises 75 China, and four were previously operated It includes 133 active aircraft, of which
passenger and five combis. The larger by Xiamen Airlines. Another aircraft that 30 are in storage, 44 are retired, and
fleets among the passenger aircraft are is being converted to freighter is due to three were written off.
Air Astana (4), American (9), Icelandair enter service with Cargojet. The 133 active aircraft are split
(17), Jet2.com (11), Royal Flight (6) and The 56 retired aircraft include 53 that between 60 freighters and 73 passenger
TUI UK (11). were operated as passenger aircraft. Four aircraft. The latter are divided between
The five combi aircraft include three were retired in 2018 and one in 2019. three main fleets operated by American
operated by US airline ATI and two in Some of these may be conversion (26), United Airlines (40) and Icelandair
service with the New Zealand Air Force. candidates. Most of the others have (6). There is also one aircraft operated by

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6 I AIRCRAFT TRADING & THE AFTERMARKET
About 40% of the PW2000-powered 757-200s
are now inactive. A portion of ex-United
757-200s were converted to freighters and are
operated by FedEx.

The 57 active aircraft include nine

passenger-configured aircraft, 35 factory-
built and 13 converted freighters.
The nine active passenger aircraft are
split between Aer Lingus (3), Delta (2),
Azur Russia (3) and one other aircraft.
Delta Airlines therefore has 111 of the
142 active PW2000-equipped passenger
aircraft, equal to 77% of the fleet.
Delta’s 757 fleet peaked in 2010 at
180 aircraft following its merger with
Northwest and its PW2000-powered
757-200 fleet. The active fleet started to
gradually decline a few years later. Delta’s
current fleet also includes all 16 PW2043-
powered 757-300s.
United has the second largest active
fleet, with 14 aircraft left in service. These
two fleets total 125 of the 142 active
passenger aircraft, equal to 88%.
National Airlines. United’s 757 fleet peaked at 87
All 30 aircraft in storage are PW2000 fleet PW2000-powered aircraft in 2009 and
passenger-configured. Two were parked The PW2000 fleet for the 757-200 is 2010, before the absorption of
in 2019, but about half this group has split between 332 aircraft with the Continental Airlines. Continental’s fleet
accumulated more than 70,000FH. Some PW2037 rated at 38,250lbs, and 79 added 61 RB211-powered aircraft, and
of these could possibly be suitable powered by the PW2040 rated at United’s total 757 fleet in 2011 was 156.
conversion candidates. 41,700lbs. There are also 16 PW2043- The fleet started to decline in 2013
The 44 retired aircraft are all in powered 757-300s in operation. with the gradual retirement of PW2000-
passenger configuration. More than half As with RB211-powered aircraft, the powered 757-200s. The fleet dropped by
have accumulated more than 70,000FH. main demand for PW2000 engines comes 39 aircraft in 2014, and reached 14 in
Six were parked in 2018 and two in from operators of converted freighter 2019. These are operated together with
2019. aircraft and airlines still operating small 61 RB211-powered 757-200s and -300s.
Of the 75 -535E4- and 73 -535E4B- fleets of used passenger aircraft. The United’s fleet was mainly engines
equipped active passenger aircraft, 130 source for these engines will be aircraft without the reduced temperature
come from large fleets: Air Astana (4), that are already retired, and active configuration (RTC). Some of the retired
American (35), Icelandair (23), Jet2.com passenger fleets as they retire over the aircraft were converted and are operated
(11), Royal Flight (6), TUI UK (11, and next five to 10 years. by FedEx.
United (40). Excluding aircraft with special roles, The fleet of PW2000-powered 757-
There are also 35 active 757-300s the PW2037 fleet of 327 includes 185 200 freighters therefore totals 99 aircraft,
with RB211-535E4B engines and another active, two stored and 138 retired including 64 converted aircraft. FedEx
four with -535E4C engines. aircraft, and two that have been written operates 44 -200SFs, and others are
There are 203 757-200 freighters with off. operated by ATI (4), EAT/DHL (11) and
RB211-535E4/E4B engines in service, and The 185 active aircraft include 133 in a group of other small fleets. UPS
160 of these are converted aircraft. passenger configuration, a single combi, operates all 35 PW2040-powered -
Most are -535E4-powered, operated and 51 converted freighters. 200PFs.
by EAT/DHL (12), FedEx (66), Blue Dart The 133 active passenger aircraft The 15 stored aircraft with PW2040
(6), Morningstar Express (8), Cargojet include fleets operated by Delta (109), engines include 10 that were parked in
(4), SF Airlines (23), and a group of other United (14), Uzbekistan Airways (5), 2017-2019, plus three old freighters.
Chinese airlines with a fleet of 16. There Azur Russia (4) and one other aircraft. The seven aircraft that were retired in
are a few other small fleets. Most of the 51 converted freighters 2009-2018 would have provided a source
There are also 20 -535E4B-equipped are operated by DHL carriers and FedEx. of PW2040 engines.
aircraft operated by SF Airlines, DHL, The retired fleet of 138 includes 66
Cargojet and other small carriers. The that were previously operated by Delta
remaining 43 aircraft are factory-built Airlines. Engine market
freighters. UPS has 40. All retired aircraft were stood down The market dynamics of a used
Most demand for any RB211-535 by their operators from 2013 to 2018. aircraft type often result in a high
engines that come available will mainly This includes 10 in 2016, 17 in 2017 and percentage of a fleet that is inactive
be from the operators of these converted 12 in 2018. through parking and retirement providing
freighters, and a small number of Excluding aircraft with special roles, sufficient supply of airframes, system
passenger-configured aircraft. FedEx and the PW2040-equipped 757-200 fleet of components and engines. This reduces the
UPS will have a supply of spare engines 79 aircraft includes 57 active, 15 stored market value of time-continued or ‘green
for their factory-built freighters. and seven retired aircraft. time’ engines, with some maintenance life

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8 I AIRCRAFT TRADING & THE AFTERMARKET
A large number of 757-200s have been retired by
airlines that have utilised most of the engines’
maintenance life. This is one factor that has
caused a recent shortage of serviceable
RB211-535 & PW2000 engines with ‘green time’.

not yet at full capacity. This has left

Ameco Beijing and Iberia Maintenance as
the two main shops.
In the case of the PW2000, the main
engine shops are with Pratt & Whitney
Engine Services (PWES), United Technical
Operations, Delta Tech Ops, and MTU
Maintenance. United Airlines, however,
outsourced the maintenance of its
PW2000s to other providers. Moreover, it
has performed few PW2000 SVs in recent
years. Delta Tech Ops is reported to have
carried out SVs for only third-party
customers, but not engines for Delta
Airlines. Most PW2000 engine SV
activity has been provided by MTU
Maintenance and Delta Tech Ops in
remaining, to a level where it is more recent years. United Technical Operations
economic for airlines to acquire these RB211-535 & PW2000 market is available for third-party work.
engines rather than conduct full shop The actual condition of the RB211- This reduction in maintenance
visits (SVs) and replace life-limited parts 535 and PW2000 market is one of capacity has been compounded by the
(LLPs). This will appeal to many limited or almost zero supply of time- reduction in activity at specialist repair
operators of used aircraft that do not continued engines. This shortage has providers. Moreover, the production of
require engines to achieve the longest resulted in airlines being quoted prices of particular components and parts has
removal intervals. $5 million or more for engines with slowed or even halted. Examples are high
The economics of this practice 4,000EFC or more of remaining LLP life. pressure turbine material and the diffuser
depend, however, on how the market One case was an engine fresh from an SV, case for the PW2000, and components
availability and value of time-continued with 9,000EFC LLP life remaining, being for the combustor on the RB211-535.
engines compares to the cost of full marketed for more than $9 million. The situation has been exacerbated by
maintenance. Time-continued engines As a guide, the market value of the retirement of large numbers of
would need to have a maximum value RB211-535 engines that can achieve up aircraft with little or no maintenance left
that is equal to the pro-rated value of a to 3,000EFC on-wing before requiring on their engines by American, Delta and
shipset of LLPs according to their maintenance is equal to about $1,000 per United. A final factor has been the large
remaining lives. For example, a shortage EFC. That is, engines that could probably number of 757-200s that have been
of engines will push values higher than achieve 2,000-3,000EFC would have a converted to freighter, which means that
100% of pro-rated LLP values, and so value of $2.0-3.0 million. This high rate the 757 fleet has not retired to the same
likely to favour SV maintenance. per EFC would not apply to engines with extent as most other aircraft types.
Availability of green-time engines may a superior maintenance condition. The overall consequences of these
be increased with a steady stream of The current shortage of ‘green time’ developments are that engine SVs are
retirements. Engines with maintenance engines has been compounded by a series taking a long time to perform. The
life remaining can, however, be switched of events over a few years, starting with typical turn time of 60-75 days has been
to other active aircraft left in a fleet, with the closure of several engine shops, or a extended to more than 90, partly because
the ultimate aim of retiring each fleet reduction in their activity. The TAESL engine shops maintain lower levels of
member when most of the engine shop in Texas for the RB211-535 closed part and component inventory. Some
maintenance life has been used. This is in 2016. This reduced available specialist repair shops are taking up to 50
financially efficient for the original maintenance capacity, although it was days to return components to the engine
operator, but it will result in a large thought it would have little effect because shops. Some individual engines have been
number of engines with almost zero of the rapid retirement of American’s stuck in engine shops for more than a
maintenance life and a scrap value on the aircraft. Some of the aircraft were in fact year waiting for particular parts to be
market. acquired by The Texas Aero Group and provided.
There are 195 inactive RB211- converted to freighters. These factors have compounded the
powered and 164 inactive PW2000- The closure of TAESL was soon shortage of time-continued engines, and
equipped 757-200s, equal to 36% of the followed by Rolls-Royce’s problems with led to engines having to undergo SVs, and
757-200s built. the Trent 1000, and the subsequent need airlines having to accept the resulting
Several other issues, however, affect to transfer all RB211-535 work out of its costs.
the supply of time-continued and good Engine Overhaul Services (EOS) shop in SV costs for PW2000 engines are
quality engines on the market, including: Derby, UK. Rolls-Royce has awarded from about $4.0 million for a
the relative cost of SVs and LLPs, the StandardAero an exclusive licence to performance restoration, and $5.5
availability of SV and specialist repair perform maintenance for RB211-535s million and higher for an overhaul. This
capacity, and the supply of particular managed under TotalCare contracts at its excludes the cost of replacing LLPs.
parts and components. Texas facility, but StandardAero’s shop is Caution should be taken for findings,

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 9 I AIRCRAFT TRADING & THE AFTERMARKET
which can add another $250,000- original equipment manufacturer (OEM) airfoils, would mean that continued
400,000. that includes both engineering and the operation of the engine is only possible
In the case of the RB211-535, most production of components and parts, and for a limited number of years.
operators are having to put engines sufficient SV capability and capacity. First, the remaining engine shops with
through a Level 3 SV. This is now Estimates by ICF consultants are that RB211-535 capability are StandardAero,
reaching a cost of $5.2-5.8 million, and the number of RB211-535 SVs for the located in Texas; Iberia Maintenance, in
airlines are accepting this and the likely global fleet will be about 107 in 2019, 99 Madrid, Spain; and Ameco Beijing,
subsequent removal interval. Again, an in 2020, and fall to about 57 in 2022. Beijing China. Rolls-Royce itself performs
allowance should be made for findings. One of the first issues to consider is RB211-535 maintenance at its EOS shop
A deeper Level 4 SV will incur a the level of support the OEM will provide in Derby, United Kingdom. Rolls-Royce
higher cost, and can be escalated with the the engine over the long-term. The itself offered a range of technical and
chance of findings at engine disassembly. cessation by the OEM of the manufacture maintenance services that include its
A light workscope, such as a Level 2, can of LLPs and critical parts, especially TotalCare, SelectCare, LessorCare, and
help an RB211-535 achieve 2,000-
3,000EFC more on-wing.
The 2019 cost of a shipset of LLPs for
PW2000 engines is about $7 million, and
close to $6 million for RB211-535s.
These escalate at about 6% per annum.
The LLP lives for the PW2000 are
20,000EFC for all modules, except parts
in the high pressure turbine (HPT), which
have lives of 15,000EFC.
The LLPs in RB211-535s have
varying lives, according to the engine’s
operating profile. Current list price for a
shipset is in the order of $5.8 million.
PW2000 engines are divided between
earlier-built non-RTC engines and those
with the RTC modification. Lower-rated
PW2037 non-RTC engines achieve
intervals of 3,800-4,000EFC, and higher
rated PW2040 may have 3,400-
3,800EFC between removals when used
with passenger aircraft.
RTC engines have longer intervals of
6,000-7,000EFC on the PW2037, and
about 5,400-6,300EFC on the PW2040.
The RB211-535 is known for its
durability, and is capable of achieving
removal intervals of up to 7,500EFC, and
even longer, when operated at about
2.0EFH per EFC in passenger operations.
Engines with a high degree of repaired
material can be expected to achieve
shorter intervals.
The SV costs can result in relatively
high reserves per EFC, not including any
consideration for LLPs. This can be up to
$800 per EFC in the case of the RB211-
535; and in the range of $775 per EFC
for RTC PW2000 engines and up to
$1,300 per EFC for non-RTC engines.
Express package carriers, however,
operate the 757-200 at lower all-up
weights than passenger aircraft, and so
have a high degree of engine de-rate.
Longer removal intervals can therefore be
expected. Current and prospective 757
operators therefore have to take into
account several economic considerations.

RB211-535 support
Current and prospective 757
operators will need to be assured of
several levels of technical and engineering
support for RB211-535 engines. This will
include engineering management to plan
removals and SVs, support from the

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10 I AIRCRAFT TRADING & THE AFTERMARKET
RTC-modified PW2000 engines are capable of
achieving removal intervals of up to 7,000EFC.
Shop visits can incur costs of up to $5 million,
and so operators need to be aware of potential
maintenance reserves.

Pratt & Whitney Engines Services

(PWES), Delta Tech Ops, United
Technical Operations, CTS Engines, and
MTU Maintenance. CTS Engines will
start to perform SVs by the end of 2019.
The other four have been the main
maintenance providers for a global fleet
of more than 400 aircraft. This fleet
includes 99 freighters, and the number
could increase by another 25-30 aircraft.
The main passenger fleets include 14 left
with United and 111 left with Delta.
Once these fleets have fully retired the
remaining active fleet is unlikely to exceed
150 aircraft, taking into account some
future freighter conversions. The
time-and-material contracts. About half prices. PW2000, however, has a military
of RB211-535 engines are maintained These are the types of contracts counterpart: the F117-PW-100, which
under TotalCare contracts, and Rolls- airlines are more likely to select as powers the C-17 transport. There are
Royce says that about 42% of the fleet is aircraft change to a freighter operation or more than 270 of these four-engined
currently not covered by a TotalCare or approach retirement. These contracts also aircraft in active service. This suggests
SelectCare package. give airlines the freedom to avoid full SV that the five main engine shops for the
Rolls-Royce has issued StandardAero workscopes and LLP replacement, and PW2000 could have a substantial market
with an exclusive licence to perform swap modules for other time-continued to satisfy for an extended period.
engineering support and SV maintenance modules and used serviceable material Pratt & Whitney provides a range of
for all engines under TotalCare contracts (USM) in SVs. engine maintenance and management
at its Texas engine shop. StandardAero is StandardAero says it has the capacity contracts. These include its EngineWise
therefore Rolls-Royce’s designated end- to support and maintain engines that are programme, which offers spare engine
of-life engine maintenance service partner. not under TotalCare contracts as well as provisioning and maintenance
The maintenance work will be transferred those that are. management. EngineWise thus provides a
to StandardAero over the next 18 Iberia Maintenance in Madrid is a similar service for the PW2000 that
months. Standard Aero’s Texas engine Rolls-Royce-approved shop. Although it Rolls-Royce’s TotalCare programme
shop is not yet up to capacity, however. will no longer be designated as one of provides for the RB211-535.
As part of this development, Rolls-Royce Rolls-Royce’s shops for maintenance of EngineWise is a fleet management
has said it is committed to supporting the TotalCare engines, it will continue to programme that charges the operator a
engine, operators and maintenance shops market its capabilities for other types of fixed rate per EFH. This often suits new
while there is a viable fleet size. contract. This is likely to be for an operators, but airlines are free to use
Operators can opt to leave TotalCare increasing portion of the fleet of engines flexible maintenance contracts such as
contacts and instead use alternatives, as more 757s are retired by their primary time-and-material. This would allow
such as time-and-material, if TotalCare operators. airlines to perform their own engineering
no longer meets their requirements. Iberia has 10 customers that it management.
Standard Aero will be performing all contracts for third-party maintenance Pratt & Whitney performs SV
RB211-535 maintenance for engines independently of Rolls-Royce. These are maintenance and overhaul for the
under TotalCare from January 2021. This offered the three main types of contract. PW2000 at its Columbus Ohio shop, and
will include work that has previously Iberia Maintenance expects to perform conducts parts repairs through its East
been performed by Rolls-Royce at its 52 RB211-535 SVs in 2019, a high Hartford Repair Operations facility.
EOS shop. Rolls-Royce has started the portion of the total market. This will Delta Airlines operates the largest
process of transferring RB211-535 include about 22 engines managed under fleet of PW2000-powered aircraft, and its
TotalCare maintenance work from its pure third-party contracts. fleet of 757s peaked at 180 units in 2010.
own shop, and will use its EOS shop for Iberia Maintenance has a high level of Delta Tech Ops has a large facility at
maintenance work on its other engines. parts repair capability. It may also Atlanta, Georgia. It has a wide range of
All three remaining shops of acquire RB211-535 engines in the future capabilities that include all levels of SVs
StandardAero, Iberia Maintenance, and if they are needed by its customers and up to complete overhaul, first run
Ameco Beijing will be free to perform are available on the market. warranty repairs, test cell runs, and
maintenance on engines managed under engineering support.
all other types of contact. This will be for United Technical Operations’ engine
the 42% of engines not under a Rolls- PW2000 support shop is located in San Francisco. It is a
Royce Care package. This will be for There are several high-profile Pratt & Whitney-approved engine
maintenance contracts such as time-and- engineering support and maintenance maintenance and repair shop. United
material, not-to-exceed prices, and fixed providers for the PW2000, including Technical Operations does not, however,

AIRCRAFT COMMERCE ISSUE NO. 124 • JUNE/JULY 2019

 11 I AIRCRAFT TRADING & THE AFTERMARKET
operate as a shop for Pratt & Whitney’s and assembly, as well as parts inspection maintenance for mature engines with a
EngineWise programme. It is an and specialist repairs. It performs about civil and military application. The CF6-
independent shop, and markets to its own 20 SVs per year. 50 is an important engine for the KC-10
customers. MTU Maintenance offers its SAVEPLUS fuelling tanker in the US Air Force, and
In addition to SV workscopes, United programme for mature engines. This uses the PW2000 has both civil and military
Technical Operations has developed a maintenance alternatives such as smart applications that will require long-term
wide range of high-tech and specialised repairs, the use of USM and customised support. CTS Engines therefore expects
parts repairs. It uses lower-cost parts engine builds, and alternatives to to be in the PW2000 market for the long
manufacturing approved (PMA) maintenance that include engine leasing. term. It is also exploring the purchase of
components and airfoils in SVs as an MTU Maintenance also develops repairs parts and engines to support the
alternative to OEM parts. It also uses that are alternatives to those offered by PW2000’s material requirements.
designated engineering representative the OEM. It says these reduce scrap rates
(DER) repairs that it has developed for and are cheaper. It recently introduced a
PW2000 components and airfoils. It says mini tip repair for stage 2 HPT blades, Summary
PMA parts and DER component repairs which significantly extends the parts’ life. The current shortage of PW2000s and
can be used as an element of cost It also offers repairs for HPT outer air RB211-535s has led to an increased
management. seals, which improves engine demand for maintenance and pushed
United Technical Operations also performance and EGT margin. engine values high. To prevent this
provides engineering management that CTS Engines is based in Fort situation from persisting it is inevitable
includes SV workscope planning, engine Lauderdale, Florida. To date it has that some engines will have to be put
and module maintenance scheduling, primarily been an engine shop for the through SVs, which is made more
airworthiness directive (AD) and service CF6-50 and CF6-80C2 engines, but also difficult by a lack of capacity. The upside
bulletin (SB) review and implementation, has PW2000 capability. It says it will is that both engines can achieve long
and LLP planning. maintain this capability for the long term, removal intervals, and so alleviate similar
MTU Maintenance in Hannover, and will have full test capability for the shortages for an extended period. The
Germany is a long-term PW2000 PW2000 by the end of 2019. 757-200 has not retired as fast as many
maintenance and support provider, and CTS Engines also has high-tech parts other types, and it can be expected to
recently announced its commitment to its repair inspection capabilities that include remain popular, especially among freight
PW2000 maintenance repair and machining, grinding, welding and non- airlines.
overhaul programme for the next 10 destructive test (NDT). Its NDTs include
years. fluorescent penetrant inspection (FPI), To download 100s of articles
MTU Maintenance is fully eddy current inspection (EDI), and like this, visit:
independent, and has full PW2000 SV ultrasonic inspection (USI) tests. www.aircraft-commerce.com
capability up to piece-part disassembly CTS Engines is focused on providing

ISSUE NO. 124 • JUNE/JULY 2019 AIRCRAFT COMMERCE

12 I AIRCRAFT ANALYSIS & FLEET PLANNING

US regional airline scope clauses have evolved periodically over the past
22 years, and are due for renegotiation in 2020. Regional aircraft sizes
have increased at each stage of scope clause development, and continued
growth and the drive for lower costs per seat suggests scope clauses
should be expanded to allow larger types of regional jet.

US airline scope clauses

& regional fleet planning
N
orth American airline scope The agreements between major carriers Comair in the mid-1993 resulted in the
clauses have influenced the and regional feeders are for the latter to need for major airline pilot unions to
development of major and operate the shorter and lower-density demand scope clauses. American Airlines
regional airline fleet plans for routes to and from the airport hubs and and United Airlines first introduced their
more than two decades. Scope clauses were terminals of their major airline partners. scope clauses in 1997, and Northwest
put in place by the Allied Pilots Union The regional feeder services are designated ratified an agreement in 1998.
(APA) and major airline pilot unions to with major airline flight codes: American These clauses stipulated and limited the
protect their salaries by limiting the portion Eagle services are designated with AA flight number and size of jets that major airlines
of short-haul operations that major airlines numbers, and Delta Connection services allowed their regional feeders to operate.
can transfer to their regional partners. and United Express flights have DL and This prevented major airlines transferring
They arguably constrain airline fleet plans UA flight numbers. Regional feeder carriers an unlimited number of routes and
by preventing the economic operation of are paid flat-rate fees by the major airlines services, together with aircraft and
aircraft larger than 76 seats and up to 100- for providing these services. associated crews and equipment, from their
120 seats, and force major airlines that pay The major airlines market all services own operations to their regional feeder
higher pilot salary scales to operate via their reservation platforms and collect carriers. The purpose of this was to protect
narrowbodies at relatively high operating revenues through their revenue accounting the pilots of the major airlines, whose
costs. The details of airline scope clauses, systems for a group of operations on routes salaries are 2.5-3.4 times higher than those
the major carriers’ regional fleet, pilot operated by these regional carriers. of pilots in the regional feeder partners.
salary scales, and the aircraft options The regional carriers have their aircraft Limiting the number of RJs and larger
available to airlines are examined. painted with the liveries of regional feeders jets that a regional feeder can operate
of their respective major airline partners. maintains the number of narrowbodies a
Aircraft operating as American Airlines’ major airline has to operate, and therefore
Scope clauses regional feeders are painted in American the number of pilots that it has to employ
There are six US major carriers: Eagle’s livery, Delta’s regional feeder at its higher salary scales to provide
American Airlines, Delta Airlines, United aircraft have Delta Connection’s livery, and services across its route network.
Airlines, Southwest, Alaska Airlines and the regional fleets that operate for United With the introduction of 50-seat RJs,
jetBlue Airways. Southwest and jetBlue do are in the colours of United Express. and the development of larger RJs by
not have any routes in their networks Bombardier and Embraer, major airline
operated by regional feeder carriers or pilot unions feared a continuous transfer of
regional aircraft. Alaska Airlines has a Scope clause rationale a larger number of domestic US routes to
regional subsidiary called Horizon Air. Regional airline scope clauses are based their regional feeders. This would
There is no scope clause agreement around the limits of the fleets that their ultimately result in a reduction of routes
between Alaska Airlines and Horizon Air, major airline partners allow them to and the number of narrowbody aircraft
so Horizon Air is free to operate any operate. US regional feeder carriers evolved used by the majors. The effect would be to
aircraft type it requires. in the mid-1980s. Fleets in this period were transfer a large number of pilots to the
The three largest US carriers American, mainly 20-seat and 30- to 37-seat regional feeders.
Delta and United, each have franchise and turboprops. This included types such as the
codeshare agreements with several EMB 110, EMB 120, Jetstream 31,
independent regional partner airlines, Jetstream 41, and the Saab 340. A few US Regional jets
including: Air Wisconsin, Commutair, regionals started to operate larger 50-seat With the advent of RJs in the US
Endeavor Air, Envoy Air, ExpressJet, Mesa turboprops in the mid- and late 1980s, in regional airline network, and the
Airlines, PSA Airlines, Republic Airways particular the Dash 8-300 and ATR42, and subsequent phasing out of turboprops,
and SkyWest Airlines. Many of these to a lesser extent the Fokker 50. Larger which were the mainstay of US regional
regional carriers provide feeder services for turboprops, especially the ATR72, started carrier fleets during the 1980s and 1990s,
more than one major airline. It previously to be operated in larger numbers from the major US airline pilot unions started to put
also included airlines such as Air Midwest, late 1980s. This was added to by the Q400 scope clauses in place.
Allegheny Airlines, Atlantic Coast Airlines in the case of Horizon Air in 2000. The first RJs to enter service were the
(ACA), Atlantic Southeast Airlines (ASA), The introduction of the first 50-seat 50-seat CRJ100/200. Large orders were
Chautauqua Airlines, and Mesaba Airlines. Bombardier CRJ regional jet (RJ) by placed in the late 1990s and into the early

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 13 I AIRCRAFT ANALYSIS & FLEET PLANNING
American Eagle operates 150 ERJ-140s and
-145s, with some being used at Miami. American
Eagle has reduced the use of 50-seat RJs at
Chicago and other hubs in favour of larger
aircraft.

2000s. The CRJ100/200 has a standard

seat capacity of 50 and a maximum take-
off weight (MTOW) of up to 44,000lbs.
The CRJ100/200 won more than 740 firm
orders from US major and regional airlines.
The CRJ100/200 was followed by the
Embraer ERJ-145, also with a standard
seat capacity of 50. Its highest MTOW
variant was 53,131lbs. The ERJ-145 was
similarly popular, and attracted more than
480 firm orders from US carriers.
The large number of 50-seat RJ orders
and the short period over which they were
placed saw a fast reduction in the number
of turboprops being used by US regionals.
RJs were found to increase demand and and has been launched as a replacement The E-175 is also operated with an
passenger load factors. for some of the ageing CRJ100/200 interior layout of 70 seats, and in this
The first significant scope clause limits aircraft in service. The CRJ550’s MTOW configuration is referred to as the E-175SC.
on the number and size of RJs permitted is 10,000lbs lighter than the CRJ700’s. This variant is used by airlines to comply
were put in place following the rapid The Embraer E-Jets were launched in with scope clauses, by not exceeding the
success of the CRJ100/200 and ERJ-145. the late 1990s, and the first aircraft entered number of aircraft permitted with 76 seats.
The first restriction was a limit on the service in 2004. The two smallest members This version of the E-175 is operated
number of 50-seat aircraft. This limit was of the family were the E-170 and E-175, by SkyWest for Delta Connection in a fleet
circumvented by the development of 40- with a standard seat configuration of 70- of 30, and by ExpressJet for United
and 44-seat variants of the CRJ, the 78 and 78-86 seats respectively. Express in a fleet of seven. In this
CRJ440. Northwest ordered a fleet of 86. Some scope clause limits were configuration the aircraft will suffer an
Similarly, two shorter variants of the introduced for a period, however, that even larger penalty in cost per ASM
ERJ were launched: the 37-seat ERJ-135, placed an upper limit of 70 seats on the performance.
and the 44-seat ERJ-140. The ERJ-135 and seat capacity of all RJs in US regionals. As In both 70- and 76-seat cabin layouts,
-140 won 85 and 74 firm orders from US a result, similar to the CRJ700, the E-170 the E-175 will be limited to a MTOW of
regional airlines. is operated in a 70-seat configuration. This 86,000lbs.
Scope clause limits were extended in compares with a single class layout of 70- The CRJ900 is a stretch of almost 13
the early 2000s for the first time to allow 78 seats, so the aircraft can also suffer feet over the CRJ700, and has a standard
larger RJs. The CRJ700 was the first from a relatively high cost per ASM single-class layout of 76-90 seats, 12 more
stretch variant of the CRJ100/200, and has because of scope clause limitations. than the CRJ700. The CRJ900 has a
a standard seat capacity of 66-78 seats. The E-170 is operated by Republic MTOW up to 84,500lbs.
Various scope clause limits on aircraft seat Airways in a fleet of 60. It operates the E- The CRJ900 is operated by Mesa Air
numbers have, however, seen US regionals 170 at DTW as Delta Connection; and at and PSA for American in a 76-seat layout
configure their aircraft with 63-70 seats. Denver (DEN), Newark (EWR) and in fleets of 64 and 59. It is also operated by
The aircraft therefore had to be configured Houston (IAH) as United Express. Endeavor Air, GoJet and SkyWest with 76
in many cases with a lot of space for The E-175’s fuselage is nearly six feet seats for Delta in fleets of 109, 10 and 31.
galleys, toilets and closets. The limit on a longer than the E-170’s. It has a standard SkyWest also operates a fleet of 100
maximum of 70 seats compared to a single-class interior of 78-88 seats, and a CRJ900s in a 70-seat configuration.
maximum possible capacity of 78 seats, MTOW of up to 89,000lbs.
means the aircraft would suffer a cost per The E-175 is operated by: Compass
available seat mile (ASM) penalty. Airlines in a 76-seat configuration for Regional feeder fleets
The CRJ700 is operated by several US American Eagle in a fleet of 56; Envoy Air Regional airline scope clauses and fleets
carriers, including SkyWest (101 aircraft), for American Eagle services in a fleet of 60; have continued to evolve since the late
PSA (49), Endeavor Air (5), Envoy Air Republic Airways in a fleet of 128 for all 1990s and early 2000s as 50-seat RJs and
(12), GoJet (41), and Mesa Air (20). three majors; SkyWest in a fleet of 89 for then larger RJs started to come into service.
As a continuation of complying with Delta and United; and Mesa Air in a fleet The consolidation among US majors
scope clauses and the number of aircraft in of 70 for United. These were introduced has seen America West merge with
each group of seat capacities, Bombardier when the scope clauses changed to allow a USAirways in 2005, followed by
launched a 50-seat variant of the CRJ700 specified number of aircraft with 76 seats USAirways being absorbed into American
called the CRJ550 in February 2019. A and a MTOW of up to 86,000lbs. Airlines in 2015. Northwest Airlines then
single order for the CRJ550 has been The aircraft will suffer a unit cost per merged with Delta Airlines, and United
placed by United Airlines for 50 aircraft. ASM penalty with this capacity when Airlines merged with Continental. From
The CRJ550 will keep the United Express considered against its 88-seat maximum 2005 to 2015, seven major airlines
fleet compliant with its scope clause limit, capacity in a single class. consolidated into three. America West,

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14 I AIRCRAFT ANALYSIS & FLEET PLANNING
Under its scope clause agreement, American
Eagle can operate up to 320 70- to 76-seat RJs.
These are a mixture of E-175s in a 76-seat
configuration, and CRJ700s and CRJ900s with 65
to 76 seats.

Delta has the second largest fleet in the

US of 940 aircraft, and its regional partners
provide another 452 aircraft (see table,
page 16). Narrowbodies account for 84%
of the mainline fleet. The smallest aircraft
type is the A220-100 in a 109-seat
configuration. The next largest type is the
A319 at 132 seats. Delta has also ordered
50 A220-300s in a 130-seat configuration.
Delta has five regional airlines
providing feeder services as Delta
Connection with DL flight numbers.
Delta’s scope clause allows up to 348 50-
seat aircraft and RJs. In the case of larger
aircraft, the scope clause limits MTOW at
USAirways, Northwest, and Continental In the case of larger RJs, the American 86,000lbs, and allows up to 102 aircraft
all had regional feeder partner airlines. Airlines scope clause allows the number of with a 70-seat capacity and 223 aircraft
aircraft up to 76 seats to be equal to 40% with a 76-seat capacity. The scope clause is
of the narrowbody fleet. The narrowbody due for renegotiation from 2020.
American Eagle fleet is 775 units in 2019, so up to 310 Aircraft up to 50 seats are the 43
American Airlines now operates a aircraft would be permitted. CRJ200s operated by Endeavor Air at the
mainline fleet of about 930 aircraft, which Compass Airlines, Envoy Air, Mesa Air, ATL, DTW, LGA, MSP and EWR hubs;
includes 775 narrowbodies, accounting for PSA Airlines and Republic Airways all and the 87 CRJ100/-200s operated by
83% of the fleet. The smallest aircraft in its operate 65- to 76-seat aircraft. These SkyWest at the DTW, LAX, MSP, JFK,
fleet is the E-190, configured with 99 seats. include 20 E-175s operated by Compass SLC and SEA hubs (see table, page 16).
American’s next largest aircraft is the Airlines in a 76-seat configuration at LAX. Endeavor Air, GoJet, Republic
A319, configured with 128 seats, in a fleet Envoy Air operates 19 65-seat CRJ700s, Airways, and SkyWest all operate 69- and
of 132 aircraft. and 60 76-seat E-175s at ORD, DFW, 70-seat aircraft. Endeavor Air operates five
American has an extensive MIA and JFK (see table, page 16). CRJ700s, GoJet operates 17 CRJ700s in a
intercontinental network, which is Mesa Air operates 64 CRJ900s in a 76- 70-seat layout; Republic Airways operates
supported by its widebodies and 757s. seat configuration at DFW and PHX. PSA 22 E-170s with 69 sets; and SkyWest
The absorption of airlines during the Airlines operates 41 CRJ700s with 65 operates 15 CRJ700s in a 69-seat layout,
1980s and 1990s, and in particular the seats, and 59 CRJ900s with 76 seats. 30 E-175s with 70, seats, and 10 CRJ900s
merger with USAirways in 2015, has SkyWest operates 41 CRJ700s in a 70-seat configuration (see table, page
resulted in American operating at 10 major configured with 65 seats and 21 CRJ700s 16). These fleets total 99 aircraft, which is
hub airports for domestic services: with 70 seats. three aircraft less than the scope clause
Charlotte (CLT), Chicago O’Hare (ORD), In total, American Eagle feeder carriers limit of 102. SkyWest, however, has 10
Dallas/Forth Worth (DFW), Los Angeles operate 410 E-175, CRJ700 and CRJ900 CRJ900s and four E-175s on order.
(LAX), Miami (MIA), New York JFK aircraft with 65-, 70- and 76-seat All five regional partner airlines operate
(JFK), New York La Guardia (LGA), configurations (see table, page 16). This aircraft with a 76-seat capacity, including:
Philadelphia (PHL), Phoenix (PHX) and compares to the scope clause limit of 310. 36 E-175s operated by Compass Airlines at
Washington National (DCA). American The scope clause can be renegotiated after LAX; 109 CRJ900s by Endeavor Air;
has more hubs than any other US carrier. 31st December 2019. seven CRJ900s by GoJet; 16 E-175s by
American has seven regional feeder Republic Airways; and 31 CRJ900s and 24
airlines operating American Eagle services E-175s operated by Sky West. The fleet of
for American with AA flight numbers. Delta Connection 76-seat aircraft totals 223 units. This is
Collectively, these airlines operate 615 of Delta absorbed Western Airlines in the equal to the scope clause limit.
their aircraft in American Eagle livery. 1980s and so acquired a hub at Salt Lake
The American Airlines scope clause City (SLC). It later established a hub at
allows its regional partners operating as Cincinnati. Its largest hub for US domestic United Express
American Eagle to have an unlimited operations is Atlanta (ATL). Before its United Airlines had five main hubs
number of 50-seat RJs. Envoy Air operates merger with Northwest in 2009, Delta was established at San Francisco (SFO), LAX,
at ORD, DFW, MIA and JFK; and overall also operating hubs at Boston (BOS), JFK, DEN, ORD and Washington Dulles (IAD)
has 50 44-seat ERJ-140s and 60 50-seat Seattle (SEA) and LAX. The merger with before its absorption of Continental
ERJ-145s. Piedmont Airlines operates at Northwest in 2009 added Minneapolis/St Airlines in 2001. Continental’s main hubs
CLT and PHL with a fleet of 60 ERJ-145s. Paul (MSP) and Detroit (DTW). Overall, were IAH and EWR; these now comprise
PSA Airlines operates at CLT with 35 50- Delta operates from nine hubs, including the two of United’s seven hubs. United is the
seat CRJ-200s. This totals 205 aircraft up East and West Coast gateways of BOS, JFK, third largest major airline, with 816
to 50 seats (see table, page 16). EWR, SEA and LAX. mainline aircraft, split between 619

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16 I AIRCRAFT ANALYSIS & FLEET PLANNING
US AIRLINE REGIONAL PARTNER FLEETS & SCOPE CLAUSE LIMITS narrowbodies and 197 widebodies.
Narrowbodies account for 76% of the
Aircraft Aircraft fleet. United’s smallest narrowbody is the
Major Regional up to Seat Fleet more than Seat Fleet 737-700 in a 126-seat configuration,
airline partner 50 seats size size 50 seats size size followed by the A319 in a 128-seat layout.
United’s regional partner airlines are
American Compass Airlines E-175 76 20 Air Wisconsin, Commutair, ExpressJet,
GoJet, Mesa Air, Republic Airways,
Envoy Air ERJ-140 44 50 SkyWest and Trans States Airlines. These
ERJ-145 50 60 operate a fleet of 612 aircraft in United
CRJ700 65 19
Express livery with UA flight numbers.
E-175 76 60
United Airlines’ most recent scope
Mesa Air CRJ900 76 64 clause was ratified in 2012. It allows a fleet
of 50-seat RJs equal to a maximum of
Piedmont Airlines ERJ-145 50 60 90% of the narrowbody fleet, so 557 50-
PSA Airlines CRJ200 50 35 seat RJs would be permitted. The actual
CRJ700 63/70 42 fleet is 350 aircraft. These are a mix of
ERJ-145s and CRJ100s/200s operated by
Republic Airways E-175 76 84 five of the seven regional partner airlines:
Air Wisconsin with 65 CRJ200s;
SkyWest CRJ700 65 41
CRJ700 70 21 Commutair with 32 ERJ-145s; 101 ERJs
and 14 CRJ200s with ExpressJet; 93
Total 205 410 CRJ100s/200s with SkyWest; and 45 ERJ-
145s with Trans States Airlines (see table,
Scope clause limit None 320
this page). There are also 50 CRJ550s on
order with GoJet.
Delta Compass Airlines E-175 76 36 The scope clause also permits up to
255 aircraft configured with up to 75 seats.
Endeavor Air CRJ200 50 43
In total, 109 aircraft are operated by five of
CRJ700 69 5
CRJ900 76 109 the regional feeder carriers with 70-seat
configurations (see table, this page),
GoJet CRJ700 70 17 including: seven E-175s operated by
CRJ900 76 7 ExpressJet; 25 CRJ700s by GoJet; 20
Republic Airways E-170 69 22 CRJ700s by Mesa Air; 38 E-170s by
E-175 76 16 Republic Airways, and 19 CRJ700s by
SkyWest. This totals 109 aircraft.
SkyWest CRJ100/200 50 87 CRJ700 69 15 In addition to this active fleet,
CRJ900 70 10
ExpressJet has another 18 E-175s on order
E-175SC 70 30
CRJ900 76 31 that will take its fleet up to 25 aircraft.
E-175 76 24 United placed an order for a further 20 E-
175s in June 2019, which will be
Total 130 Up to 70 seats 99 configured in a 70-seat layout. They will
71-76 seats 223
replace older 70-seat aircraft.
Scope clause limit up to 348 Up to 325 The scope clause further permits the
operation of up to 153 aircraft with a 76-
seat capacity, split between Mesa Air (60);
United Air Wisconsin CRJ200 50 65
Republic Airways (28), and SkyWest (65).
Commutair ERJ-145 50 32 This totals 153 aircraft.
The scope clause also, however, allows
ExpressJet ERJ-145 50 101 one more aircraft between 70 and 76 seats
CRJ200 50 14 for every 1.25 narrowbodies added to the
E-175 70 7
mainline fleet.
GoJet CRJ700 70 25 The United Airlines scope clause is due
for renegotiation in 2020.
Mesa Air CRJ700 70 20
E-175 76 60

Republic Airways E-170 70 38 Pilot salary scales

E-175 76 28 The development of regional airline
fleets, as determined by pilot union scope
SkyWest CRJ100/200 50 93 clauses, restricts these airlines to small
CRJ700 70 19
E-175 76 65 types. As described, the largest permitted
aircraft types have 76-seat capacities and
Trans States ERJ-145 50 45 an upper MTOW limit of 86,000lbs. The
smallest aircraft types operated by the
Total 350 Up to 70 seats 109
major carriers have at least 110 seats.
71-76 seats 153
Smaller aircraft types have an
Scope clause limit up to 557 Up to 255 inherently high unit cost per ASM because
many cost elements of larger types do not
increase proportionately with seat capacity.
Regional carriers are under pressure to

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 17 I AIRCRAFT ANALYSIS & FLEET PLANNING
Delta Connection is permitted to operate up to
325 70- to 76-seat aircraft. It also has 130
smaller RJs.

maintain competitive unit costs per ASM,

including through lower salary scales for
groups of personnel, including pilots.
Pilot salaries of regional feeder airlines
are disproportionately smaller than the
salary scales of their major airline
counterparts. Most major and regional
airlines in the US guarantee basic salaries
of 75 hours per month for pilots, although
a minority guarantee 70 hours. The main
element of total annual pilot remuneration
is the basic hourly rate, which increases
with each year of service, and is fixed for
the year. The hourly rates for captains and
first officers during the first five years of
service on regional and mainline carriers
can be compared to illustrate the difference salaries at four major US carriers are $226-
between basic annual salaries. 261 per hour, and average $251 per hour Network development
The basic hourly rates paid to first in the first year. They average $259 per Analysis of the deployment of different
officers of regional carriers are $36-50 per hour in the fifth year of service. aircraft types by the major carriers reveals
hour, and average $42 per hour during the The multiple of annual basic captain the portion of seats and ASMs provided by
first year of service. These rise to $38-52 salaries between major and regional their own mainline operations and by their
per hour and an average of $45 per hour in airlines is 3.4 in the first year of service, regional partner carriers. This analysis has
the second year of service. They reach $49 and falls slightly to 3.2 in the fifth. been made for the full years of 2008 and
per hour by the fifth year of service. These The multiples in captain and first 2018 for American, Delta and United from
rates are for all aircraft types operated, in officer salaries between the major and seven major hub airports.
most cases with 50-76 seats. regional carriers are higher than the The capacity data reveals the aircraft
With 75 monthly hours guaranteed by multiples in seat numbers between the types used on each route; and the total
most airlines, average basic salaries are average-sized 737 and A320 family number of flights, seats, ASMs, average
$3,118 per month in the first year, $3,391 members at 150-160 seats versus the 70- route lengths and average aircraft seat
in the second year and $3,680 in the fifth. and 76-seat regional jets. Pilots operating numbers provided by each group of
By comparison, basic salaries for first smaller narrowbodies for majors are being aircraft. The differences between 2008 and
officers at major airlines for 737 and A320 paid more than 3.2 times than their 2018 show how the major airlines have
family aircraft average $92 per hour in the regional counterparts flying the 70- and developed their fleet and capacity across
first year, and $111 per hour in the second. 76-seat CRJ700/900 and E-170/-175, their route networks, and how their
They then rise significantly in the third year while the capacity of narrowbodies regional partner airlines have evolved. It
of service to $158 per hour, and to $167 operated by the majors is 2.0 times that of also reveals how average route length has
per hour in the fifth year. These translate to these larger RJs. The implications are that changed following the phasing out of
monthly salaries of $6,870 in the first year, the major carriers will have a pilot basic turboprops and the move to larger RJs.
$8,355 in the second, $11,850 in the third, salary cost per ASM about 50% higher
and $12,540 in the fifth. Basic salaries by than their regional partner airlines when
the fifth year of service therefore increase the aircraft are operated on the same American Airlines
by 82% over the first year of service. average route length. The analysis at American’s activities at
First officer basic salaries at major In the case of the smaller regional DFW reveals that overall there has only
airlines are therefore 2.2 times higher in the aircraft, the difference in cost per ASM for been an increase in annual seats and ASMs
first year, 2.5 times higher in the second, pilot salaries with the major airlines will be of about 7%. Over the 10-year period,
and then 3.4 times from the third year of small, and possibly even close or equal, American Eagle has completely phased out
service compared to regional airlines. because the mid-sized 737 and A320 turboprop operations, reduced activity
A similar differential between majors family members have about three times the with 50-seat RJs and added 76-seat RJs.
and regionals is seen with captains’ basic seat capacity of 50-seat RJs. Overall, the average length of routes
salaries. Regional airline average hourly The major airlines have a small operated by American Eagle has actually
rates are $73 for the first year and $76 for advantage in cost per ASM for the smallest shortened by 32 miles.
the second, and climb to $82 per hour by aircraft types operated by the regionals. American Eagle’s portion of seats and
the fifth. These equate to basic monthly That is, while major airline pilot salaries ASM capacity have increased by 5% and
salaries of $5,486 in the first year, $5,663 are more than three times higher than the 3%. Average aircraft size at American
in the second and $6,150 in the fifth. regionals, mid-sized 737 and A320 family Eagle has increased from 50 seats in 2008
Major airline pay rates per hour for types have four times the seat capacity of to 66 in 2018.
737 and A320 family types increase types such as the ERJ-135 and ERJ-140. A similar development has occurred at
steadily at $1-3 per hour with each year of The number of these aircraft in operation American’s ORD hub. Annual seats and
service. Hourly rates for captain’s basic is small, and they are due to be phased out. ASMs were 5% and 4% higher in 2018

ISSUE NO. 124 • JUNE/JULY 2019 AIRCRAFT COMMERCE

18 I AIRCRAFT ANALYSIS & FLEET PLANNING
Despite the CRJ700 being able to accommodate
76 seats, the longer CRJ900 is also used
extensively by US regional feeder airlines. Scope
clauses limit the CRJ900’s capacity to 76 seats,
meaning it will operate with a cost per ASM
penalty.

(CASM), are fuel burn, maintenance, flight

crew and aircraft financing or lease
payments. The overall CASM for each
aircraft type is also influenced by the route
lengths it operates on, the pattern of
operation, and the resulting rates of annual
utilisation in terms of flight hours (FH),
flight cycles (FC) and FH:FC ratio.
In all cases, regional and mainline
aircraft operate a hub-and-spoke system,
with aircraft operating from outstations to
a major hub, and then operating back to
an outstation. This simple rotation is
repeated several times per day.
Analysis of these four main cost
categories can be made on a range of
routes operating from a major airline hub.
than in 2008. American Eagle has reduced and has also introduced 76-seat RJs. Using ORD as an example, the economic
the capacity provided by 50-seat RJs by Average aircraft size at United Express has performance of aircraft can be compared
57%. Capacity from 70-seat RJs has only increased by six seats. United Express on eight routes with tracked distances of
increased by a factor of four, and 76-seat has also increased its share of ASMs by 146-813 nautical miles (nm). These are
RJs have been introduced. American 6% over the 10-year period. from ORD to Moline (MLI), Cedar Rapids
Eagle’s average aircraft capacity has IAH is a fifth hub that has seen the (CID), Des Moines (DSM), MSP, Duluth
increased by 10 seats to 61. portion of flights and ASMs increase in (DLH), Fargo (FAR), Oklahoma City
relation to those provided by the major (OKC) and DEN (see table, page 19).
carriers. United Express has increased its These eight route lengths cover a range
Delta Airlines portion of total flights with UA flight of distances where in some cases
Delta Airlines has seen an increase in numbers by 3% and ASMs have increased turboprops have an advantage in CASM
ASM capacity at DTW by 12.2% since by 4%. Like several other hubs, the use of over jets, and in others where jets have a
2008, although the number of DL flights small turboprops was phased out after clear advantage because their faster speed
has actually declined. Delta Connection 2008. The use of 50-seat RJs has also been and ability to generate a larger number of
carriers have phased out the use of small reduced by about 65%. In the meantime ASMs lead to lower cost per ASM.
turboprops, and have also reduced the the use of 70-seat RJs has increased Nine regional aircraft types have been
capacity of 50-seat RJs by more than 50%. threefold and 76-seat RJs have been analysed and compared on these eight
In the meantime, 70-seat RJs have been introduced. These now account for more routes: the ATR42-500 (48 seats); the
introduced, while 76-seat RJ activity has than half the flights and about half the ATR72-500 (70); the Q400 (76); the
more than doubled. Average aircraft size ASM capacity in 2018. Average aircraft CRJ200 and ERJ-145 (50); the CRJ700
for Delta Connection’s operation has size at United Express for IAH has and E-170 (70); the CRJ900 and E-175
increased by 13 seats to 64 in 2018. increased from 47 seats to 63, by 16 seats, (76); and the E-190 (100) (see table, page
Delta Connection has seen its portion over the 10-year period. 19). All of these aircraft are, or could be,
of seats for operations at ATL actually United’s operation at EWR has seen operated by US regionals within the scope
decline from 27% in 2008 to 9% in 2018, little change in the portion of flights clause limits of major airlines. The E-190
and its portion of ASMs move down from operated and ASM capacity provided by has been included to illustrate the relative
18% in 2008 to 5%. the mainline carrier and United Express. economics of larger types. It is possible that
At ATL, Delta Connection has seen The use of small turboprops has been scope clauses could eventually be
large reductions in operations with 50-seat phased out and operation of 50-seat RJs renegotiated to allow aircraft of this size.
RJs, turboprops and 70-seat RJs. has been cut back. As with all others, the While turboprops have a clear CASM
Meanwhile, the size of operation with 76- capacity provided by 70- and 76-seat RJs advantage on shorter routes, and fast
seat RJs has also slightly reduced. has increased. Average aircraft size aircraft are becoming increasingly
Delta’s mainline operations in the provided by United Express overall has competitive on longer mission lengths, each
meantime have seen a 55% increase in the increased by seven seats to 59 in the 10 aircraft type has been analysed on the basis
number of flights, and a 35% increase in years to 2018. that it operates all eight routes for a single-
the number of ASMs. The average size of type fleet. The average route length for all
aircraft in Delta’s operation at ATL has aircraft is thus a tracked distance of 411nm
also reduced by eight seats to 159. Relative operating costs and an equivalent still air distance (ESAD)
The relative operating costs of a range of 464nm. The corresponding flight times
of regional types can be analysed on a and ASMs generated for this average route
United Airlines relatively simple basis. The four main length are summarised for each aircraft
At DEN, United Express has phased operating cost elements, and the ones that type (see table, page 19). The resulting
out operations of small turboprops. It has make the largest differences in overall total block time is the flight time plus an average
increased activity with 50- and 70-seat RJs, unit cost in terms of cents per ASM taxi time of 36 minutes.

AIRCRAFT COMMERCE ISSUE NO. 124 • JUNE/JULY 2019

 19 I AIRCRAFT ANALYSIS & FLEET PLANNING
The annual utilisations likely to be ECONOMIC ANALYSIS - ROUTES & FLIGHT & TAXI TIMES - ATR42/72
achieveable in FC, FH and block hours
(BH) for each aircraft for this average route Great circle Tracked Flight Taxi Block
length are also summarised (see table, this Route dist - nm dist - nm time - mins time - mins time - mins
page).
Aircraft with fast speeds can generate ORD-MLI 121 146 49 37 86
more FC per year, and so generate more ORD-CID 170 190 61/62 39 100/101
FC, FH and BH per year. The ATR42 and ORD-DSM 260 259 77/80 37 114/117
72 therefore have the lowest rates of ORD-MSP 290 327 95/98 45 140/143
utilisation. The Q400, completing a ORD-DLH 345 369 103/109 34 137/143
411nm mission in 25 minutes less time ORD-FAR 484 520 141/151 34 175/185
ORD-OKC 602 662 167/178 37 204/215
than the ATR42/72, is able to achieve
ORD-DEN 722 813 210/222 42 252/264
higher rates of 1,500FC per year. The ERJ-
145, the slowest of all RJs, achieves about
1,650FC per year, while the remaining RJs
achieve 100-250FC per year more, up to ECONOMIC ANALYSIS - ROUTES & FLIGHT & TAXI TIMES - Q400
1,900FC per year.
Each aircraft’s annual ASM Great circle Tracked Flight Taxi Block
productivity is determined by the ASMs for Route dist - nm dist - nm time - mins time - mins time - mins
the average route length multiplied by the
annual FC utilisation (see table, this page). ORD-MLI 121 146 33 37 70
Aircraft with faster speed and larger seat ORD-CID 170 190 42 39 81
capacity are therefore able to generate ORD-DSM 260 259 57 37 94
more ASMs per year, which has a positive ORD-MSP 290 327 71 45 116
ORD-DLH 345 369 79 34 113
effect of diluting cash costs to produce
ORD-FAR 484 520 113 34 147
lower cost per ASM. The higher ASM ORD-OKC 602 662 135 37 172
productivity of jets is required to offset ORD-DEN 722 813 172 42 214
their higher capital and financing cost, and
higher maintenance reserves and fuel burn.

ECONOMIC ANALYSIS - ROUTES & FLIGHT & TAXI TIMES - REGIONAL JETS
Fuel burn & cost
The flight and block times and fuel Great circle Tracked Flight Taxi Block
burns of these nine aircraft types on the Route dist - nm dist - nm time - mins time - mins time - mins
eight routes have been analysed, on flights
conducted from ORD, and using standard ORD-MLI 121 146 28-36 37 65-73
US domestic flight rules. The resulting ORD-CID 170 190 34-44 39 73-83
ASMs generated by each aircraft type, the ORD-DSM 260 259 45-57 37 82-94
ORD-MSP 290 327 56-68 45 101-113
fuel burn per ASM and the fuel cost per
ORD-DLH 345 369 62-74 34 96-108
ASM are summarised (see table, this page). ORD-FAR 484 520 87-99 34 121-133
The fuel cost per ASM is based on a spot ORD-OKC 602 662 102-114 37 139-151
fuel price of $2.10 per US Gallon (USG). ORD-DEN 722 813 129-141 42 171-183
The three turboprops have a clear
advantage in fuel cost over similar-sized
RJs on all routes. The E-190 is the most
efficient jet on account of its 100-seat AIRCRAFT TYPES & ECONOMIC ANALYSIS
capacity.
The Q400 is the most efficient of three Aircraft Average route Annual Annual Annual Monthly
turboprops up to the fourth route with a type Seats length - nm FH FC ASMs lease rental - $
tracked distance of 327nm, after which the
ATR72-500 has a fractionally lower cost. ATR42-500 48 411 1,805 950 18,741,600 84,000
These two have the lowest fuel cost per ERJ-145 50 411 2,261 1,650 33,907,500 115,000
ASM of all nine types on all eight routes. CRJ200 50 411 2,400 1,750 35,962,500 120,000
The ATR42-500 is at a disadvantage to
ATR72-500 70 411 1,805 950 27,331,500 160,000
the two larger turboprops, but has a fuel Q400 76 411 2,250 1,500 48,854,000 185,000
burn cost about 1.25 cents lower than the
CRJ200 and 1.70-2.00 cents lower than CRJ700 70 411 2,185 1,900 54,663,000 180,000
the ERJ-145 on the two shortest routes. CRJ900 76 411 2,400 1,750 54,663,000 210,000
The ATR42-500 then has a marginally E-175 76 411 2,400 1,750 54,663,000 200,000
higher fuel cost per ASM than the E-190
on the six longer routes from 260nm. E-190 100 411 2,400 1,750 71,925,000 231,000
The E-190 has a clear fuel burn cost
per ASM advantage over the ATR42-500
from 370nm onwards. This demonstrates number advantage. 1.1 cents advantage on the 327nm route,
the relative fuel efficiency of turboprops The fuel efficiency of turboprops is and 0.5 cents on the 662nm route.
over RJs, given that the ATR42-500 here clearly illustrated by the ATR42-500 When compared with the CRJ200, the
has less than half the number of seats that against the equal-sized CRJ200 and ERJ- ATR42’s advantage is 1.25 cents on
the E-190 has. The E-190 is the most 145. The ATR42’s fuel cost per ASM is a 146nm route, and is still as much as 0.95
efficient of the six jet types, which is clear 2.0 cents lower over the ERJ-145 on cents on the 662nm sector.
expected because of its size and seat the shortest 146nm route, but declines to a The ATR 72-500 and Q400 fare well

ISSUE NO. 124 • JUNE/JULY 2019 AIRCRAFT COMMERCE

20 I AIRCRAFT ANALYSIS & FLEET PLANNING
can fly for. Despite the monthly guarantees
of 75 hours, the number of crews per
aircraft have been based on 850 completed
BH per year.
The resulting cost of pilot salaries per
ASM therefore depend on the aircraft’s
annual ASM productivity. The use of
uniform salaries for all types therefore
favours the faster aircraft types. Crew costs
per trip have been calculated on average
crew cost per BH, multiplied by the block
time. The cash cost has then been
apportioned over the ASMs for each route
length. This factors in the effect of speed
on resulting cost per ASM.
The largest and fastest type, the E-190,
has the lowest crew cost per ASM. The
ATR42-500 has the highest on this basis,
although the two types have equal pilot
salaries which may not apply in all airline
types. The ATR42-500’s cost per ASM is
1.65 cents higher on the shortest 146nm
route, and this difference reduces to about
1.05 cents on the longest 813nm route. All
other seven aircraft types have costs per
against the equal and similar-sized for shop visits and per EFC for LLP ASM between these two extremes.
CRJ700, E-175 and CRJ900. The ATR72- replacement are low compared to the
500’s advantage over the three RJs is 3.0- CF34-8Cs, -8Es and -10Es of the various
3.5 cents per ASM on the shortest route, CRJ and E-Jet family members. The Q400, Aircraft financing
2.1-2.2 cents per ASM on the medium however, gains in costs per ASM because it Aircraft financing charges account for
length route of 369nm, and 0.75-1.00 has high speed and ASM productivity. the highest portion of all aircraft-related
cents per ASM on the longest route. Overall therefore, it has engine costs per operating costs. Monthly lease rentals for
The Q400 is more fuel-efficient on the ASM 0.30-55 cents lower than the large the nine types are summarised (see table,
shortest routes, but the two converge on RJs, and 0.75 cents per ASM lower than page 19). These are based on all aircraft
routes longer than 200nm, so the Q400 the smaller RJs and turboprops. being acquired new in 2018/19. This is not
has an advantage of 3.2-3.6 cents per ASM possible, since the two smaller RJs are no
over the RJs on the shortest route, a 2.1- longer built. The list prices for these have
2.2 cents advantage on the medium-length Pilot salaries been extrapolated. A 40% discount has
route, and a 1.3-1.5 cents per ASM lower Total costs of pilot employment will been applied to aircraft list prices, and then
cost on long routes of 800nm. include basic salaries, per diems and a 0.7% monthly lease rate factor has been
allowances, transport and hotel applied.
accommodation, training, pension The annual financing costs for each
Engine reserves contributions and other elements. Basic type are thus amortised over the number of
The second main element of operating salaries account for the largest portion of ASMs generated by each aircraft.
cost per ASM is maintenance costs. This total employment cost, so they can be used Similar to other operating cost
has many elements. Although not all to give an indication of the relative categories, while turboprops have lower
elements of maintenance costs have been differences in cost per ASM for the nine cash costs, the RJs gain overall through
analysed here, engine maintenance reserves regional aircraft types. Some assumptions their higher speed and ASM productivity.
account for a large percentage of total have to be made about the typical number As with other costs, the Q400 benefits
maintenance costs. Engine reserves are per of years that pilots operate with regional from its high speed and ASM productivity,
engine flight hour (EFH) for core engine carriers before joining major airlines, and has finance costs per ASM close to the
performance restorations and overhauls, attracted by salaries that are 2.2-3.4 times CRJ900 and 2.25 cents lower than the
and per engine flight cycle (EFC) for higher. Assumptions also have to be made ATR72-500.
replacement of life-limited parts (LLPs). about the years of service with an airline The CRJ900 is penalised by its seat
These reserves account for a high and the aircraft types flown. First officers numbers being limited to 76. The same
percentage of aircraft maintenance costs. may operate with the smallest types for the applies but to a lesser degree to the E-175.
The interesting effect of the RJs’ faster first two years of service before upgrading
speed and consequently higher ASM to 70- and 76-seat jets.
productivity is that while they have more Average annual basic salaries for first Overall costs per ASM
complex engines that incur higher costs per officers will be $39,000 for the first two The two aircraft that have the overall
EFH for shop visit maintenance, and have years, and $43,000 for years three to five. lowest costs are the Q400 and E-190 (see
higher reserves per EFC for LLPs, their Salaries average $42,000 for the first five chart, this page). The paradox of this is
overall engine reserve costs per ASM are years of service. Captains’ salaries average that neither is operated by a US airline
comparable to turboprops. That is, while $70,000 per annum. regional partner that is subject to a scope
turboprops have lower cash operating The resultant cost of these basic clause. Horizon Air is the only US regional
costs, including maintenance, any salaries per ASM will depend on actual to operate the Q400. The E-190 is
advantage is lost due to their lower speed pilot productivity. Salary scales guarantee currently too large with respect to scope
and ASM productivity. payment for a minimum of 75 hours per clause limits.
The Q400 is the one turboprop that month, equivalent to 900 hours for a 12- Of the 50-seat types, the ATR42-500
benefits, since its engine reserves per EFH month period, the legal maximum a pilot only has an advantage over the RJs on the

AIRCRAFT COMMERCE ISSUE NO. 124 • JUNE/JULY 2019

 21 I AIRCRAFT ANALYSIS & FLEET PLANNING
United Express is permitted to operate up to 350
smaller RJs and a maximum 255 70- to 76-seat
RJs.

shortest route (see chart, page 20). This

analysis is based on an average route
tracked distance of 411nm. Different costs
per ASM and differences would be seen
between aircraft types for shorter and
longer routes. That is, the ATR42-500
would have the lowest costs overall if the
average route length were in the region of
200nm. This is because annual utilisations
would be lower for all types, and this
would favour aircraft types with lower
cash operating costs.
The CRJ200 has up to a 0.95 cent per
ASM advantage over the ERJ-145, and the
CRJ200 is still 0.45 cents per ASM lower
to operate on the medium length sectors. increased over the past 10 years, but the The Embraer E175-E2 has a standard
The CRJ200’s main benefit is its faster mainline carriers have also continually single class capacity of 88, but an MTOW
cruise speed, and so its ability to generate transferred routes and a portion of of 98,767lbs. Increasing the MTOW limit
more FCs per year. capacity on particular routes to their by more than 12,000lbs would allow the
Of the three larger RJs, the CRJ700 regional partners. E175-E2, and so provide airlines with the
has the best performance, being 0.22 cents While the APA and pilot unions sound potential for lower fuel costs.
lower than the E-175 on the shortest route, defiant when suggestions are made that Other manufacturers that offer aircraft
and up to 0.80 cents lower ASM on the more 76-seat RJs or larger aircraft will be with seat capacities up to 15 seats more
longest routes. permitted when scope clauses are than the current 76-seat limit of most
The CRJ900 is at a disadvantage renegotiated, it seems likely that in the long scope clauses are Mitsubishi and Sukhoi.
because its seat numbers are limited at 76. term this will indeed be the case. Mitsubishi has rebranded and made
The E-190, analysed here with a 100-seat The current limits of 76 seats and an some configuration changes to its MRJ.
arrangement, has costs 1.70-2.00 cents per MTOW of 86,000lbs may remain at the The MRJ70 was 109 feet long. The new
ASM lower than the E-175. This is an next agreed scope clause contracts, but the M100 Spacejet is three feet seven inches
important consideration for possible future number of aircraft may be increased. It (about 107 centimetres) longer. The
developments. may be that larger types are permitted in MRJ70 had a standard single-class
The overall issue is that turboprops the subsequent negotiations. In the capacity of 76 seats in a four-abreast layout
would be the most competitive aircraft on meantime, Delta has taken the strategy of and 31-inch pitch. The Spacejet has
the shortest routes. Aircraft types and route operating relatively small jetliners. It has retained the fuselage cross-section, and the
lengths have gradually both increased as 20 A220-100s in operation, with a 109- M100’s longer fuselage and reconfigured
regional airline networks have evolved for seat configuration, and has a further 25 on cabin has taken single-class seat capacity to
more than 30 years. Smaller aircraft are firm order. 84. The M100 also has an MTOW of
thus gradually becoming less important, There are several larger aircraft types 86,000lbs, complying with current US
and average route length is now at a level that are suitable candidates for operation scope clause limits.
where RJs provide an airline with an by US regional partner carriers. First, the The larger series of the MRJ was the
overall lower cost per ASM. CRJ900 has a standard single class MRJ90. The M90 Spacejet is the same
Larger types are clearly more desirable. capacity of up to 90 seats, so existing fleets fuselage length, and has the same 88 seat
Not only has continual traffic growth seen could be reconfigured to increase seat capacity at 31-inch pitch as the MRJ90.
average aircraft size used by regional numbers by up to 14. This aircraft has an MTOW of 94,358lbs.
partner carriers steadily increase, but the Similarly, the E-175 has a standard This could only be reconsidered in future
larger 70- to 76-seat RJs have costs per single-class seat capacity of 88, which is 12 renegotiated scope clause agreements.
ASM that are 0.33-0.77 cents lower than more than that allowed by some scope The Sukhoi Superjet SSJ100 has a
the 50-seat RJs. clauses. These aircraft could also have their standard single-class capacity of 108 seats
interiors re-configured. at a pitch of 31 inches, making it more
The CRJ1000 has a standard single than 30 seats larger than current scope
Future developments class capacity of up to 104. It is no longer clauses allow. There is a variant under
Continual traffic growth has led to the relevant, however, due to the sale of the development with a shortened fuselage and
periodic developments in scope clauses. CRJ programme to Mitsubishi. No more smaller seating capacity of 75-seats. This
The scope clause agreements all three large orders for the aircraft will be taken. could be an aircraft for US regional carriers
US major airlines are due for renegotiation The E-190, as analysed, has a standard to consider.
at the start of 2020. capacity of 100. It could be configured
Not only has the increase in average with fewer seats, for example 90, to To download 100s of articles
aircraft size used by regional partner comply with a new scope clause like this, visit:
airlines in the case of most major hubs agreement. www.aircraft-commerce.com

ISSUE NO. 124 • JUNE/JULY 2019 AIRCRAFT COMMERCE

22 I AIRLINE & AIRCRAFT OPERATIONS
because the spectrum could interfere with
Seamless air-to-ground connectivity is going to other network users. These systems relied
revolutionise the passenger’s internet on a vertically shot beam, so passengers
did not receive a good service on an
experience over mainland US. aircraft that was not flying at the optimal
altitude to receive the signal.
Each ground station will transmit
multiple beams. “The system is

Honeywell appointed constantly searching for the strongest

beam and the best performance” says
Walker. “We are launching upwards of
25,000 beams to cover the US, which will

reseller for SmartSky make the handover between beams

seamless.”
It is predicted the SmartSky system
will be the standalone connectivity

ATG system solution for regional jets operating over

the US. With a maximum of 7,000
aircraft flying over the US at any given

H
oneywell has been appointed compared to satellite systems, which can time, SmartSky will be able to ensure
a value-added reseller for the have average latency of about 800ms.” 100% capacity to each aircraft.
SmartSky air-to-ground High latency affects the For widebody aircraft that travel in
connectivity services. The synchronisation between personal intercontinental services to and from the
SmartSky system, expected to be electronic device (PED) features like US, SmartSky is looking to offer the
launched later this year, will provide the video-chat services and cloud-based service as part of a hybrid system.
mainland United States (US) with an air- gaming. SATCOM from Honeywell is capital-
to-ground communication capability for From June 2018 to March 2019, 125 efficient, so if the current network reaches
defence, business aviation and air million new players registered with the its limit in a certain area, it will be easy to
transport. online video game Fortnite. Players say add additional capacity. “If we have
Depending on the business model, it is that latency longer than 120ms typically customers with airline hubs in New York
estimated that the connectivity solution lowers gaming response time, creating an or Chicago or Atlanta, we can architect
will generate an average revenue-gaining uneven playing experience. It is estimated into the network greater capacity near
yield of $100,000-200,000 dollars per that lowering latency by 500ms will those airports,” says Walker.
aircraft per year for an airline. improve player response time by a full As the service is bi-directional, it is
According to John Peterson, second. possible to offload as much data from the
Honeywell Aerospace, vice president and Compared to connecting to a aircraft as it is possible to upload. Typical
general manager, Software and Services, traditional satellite system, SmartSky will traditional satellite-connected aircraft use
Honeywell Connected Enterprise, have enough low latency capability to about 10% of the bandwidth to transfer
Honeywell Aerospace: “If you think introduce competitive cloud-based data off the aircraft. The SmartSky
about the WiFi experience you have in gaming to the cabin over mainland US. system dedicates about 50% of its
your home or office, airline passengers “In addition to gaming, one of the bandwidth to offloading data from the
will be able to get that same experience demos we perform on the aircraft is to aircraft.
with SmartSky.” have a passenger sitting in a front seat “We believe this will redefine how
Early ground-based connectivity FaceTime a passenger sitting at the airlines are using connectivity. Previously,
solutions suffered because the network back,” says Walker. “Then we ask them systems have not been designed to off-
quickly became saturated. This created a to turn their phones to face each other, load in-flight data from the aircraft,” says
poor passenger experience, “SmartSky while streaming to show the other person Walker. “Everything has been designed
will have 20-30 times the amount of how fast the connection is.” around passenger connectivity.”
spectrum compared to previous As the communications path is Airlines are increasingly looking at
systems,”says Peterson. relatively short compared to travelling up their aircraft as a node on the internet.
Internet latency is the time taken for to a satellite, the system is less affected by This means they are developing more and
data to travel between its source and the weather. “Anything that transmits more use cases for pulling data off the
destination. SmartSky chief commercial through a non-vacuum space is affected aircraft in real time. SmartSky has the
officer, Nancy Walker, says: “The by its environment. The relatively short unique ability to be able to do this.
SmartSky service has much lower latency, travelling distance and low frequency “We are the network provider to the
and so faster data transmission speeds means that the system is not greatly airlines, we handle all the offloaded data,
than satellite connectivity.” affected by rain-fade,” says Walker. the termination of the data and all the
One of the reasons that SmartSky can To create a secure network, SmartSky conditioning of the data and policies.
attain such low latency is because the has architected a system that allows one That is, anything that is associated with
transmitted distance between the aircraft aircraft to use one beam at any given being a network service provider,” says
and the ground is far shorter than it is time. So, for a widebody, the maximum Peterson. “The Honeywell Smartsky
between an aircraft and space. number of users accessing the SmartSky solution is unique because it services
Measured in milliseconds (ms), a beam will never be more than the seating more than just the cabin network.
lower latency translates to a ‘snappier’ capacity of the aircraft. Complimentary to connectivity, the
user experience. “The internet has SmartSky shoots the beam six degrees solution opens up gateways that can
communications going both ways, so across the horizon, creating a stacked, ‘ice capture and aggregate data.”
high latency means that pages will load cream cone’ layer of coverage across the
slowly onto your internet browser,” says US. To download 100s of articles
Walker. “We make every effort to keep Previous technology meant it was not like this, visit:
latency below 100ms. This is very low possible to shoot the beam horizontally, www.aircraft-commerce.com

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 23 I AIRLINE & AIRCRAFT OPERATIONS

The faster you turnaround, the quicker you get to where you are going:
solutions that improve airport ground efficiency and aircraft total ground
time come in many forms. Some of these solutions use machine learning
and video technology to visualise the perfect turn, while others use
technology to lower taxiing time.

Solutions for improving

ground operations
T
he aircraft turnaround process and depart on time. It is not necessarily my team,” says Harvey. “It is better to
is a complex orchestration of by trying to make things faster. have real-time, sensor-fed information
several processes that are To help drive punctuality and stabilise telling me what is happening with this
performed simultaneously. This ground operations, LGW has created a aircraft.”
creates several possibilities for things to ‘resilience-cell’ team that airlines can call Therefore, instead of responding to
go wrong. Many vendors and teams such on for assistance. The resilience-cell team the aircraft, accurate data analytics can
as cleaning, catering and passenger can go to an aircraft and help in its turn- be used to predict how long the
service agents are all involved, and each around and steady the core operation. turnaround process will take, and when
have different priorities and time The specialist team is presented with a the aircraft will depart.
constraints. The finite amount of space list of flights that are late. They look at
around the aircraft adds to the the data and decide to accept or decline
complexity. Other factors like limited aircraft. “The team decides whether to Lufthansa Systems
terminal area space and aircraft engines decline or accept based on the likelihood The aim of turnaround time
also play their part in increasing total of gaining punctuality,” says Harvey. If it management is to contribute to the
ground time (TGT). accepts, the resilience-cell team can aircraft’s on-time performance by
For the airline, a regularly achieved provide extra assistance for that flight’s improving ground operations. The overall
short turnaround allows the aircraft to ground operations to enable the aircraft on-time performance is important
complete more flight sectors, improving to be turned around as quickly as because it is a value used to measure an
aircraft and fleet utilisation. Quicker possible. airline’s efficiency. In order to best
aircraft turnarounds also mean airports LGW is implementing data analytics improve on-time performance, airlines
can optimise their resources and and machine learning technology to also need to visualise how a perfect
utilisation of their capacity and facilities. improve ground efficiencies. Typically, turnaround will look, and make a plan.
Several solutions are available for when an aircraft is late, airports work to According to Lufthansa Systems’
airlines and airports to improve a schedule based on an airline’s pre- senior product manager Michael Muzik:
operational efficiency on the ground. determined minimum turnaround time, “If an airline specifies a turnaround time,
London Gatwick (LGW) airport has which is not always reliable. With it will need a real-time overview and basic
invested in its infrastructure and IT machine learning, it is possible to transparency of all the different on-
systems to improve overall capacity and calculate a turnaround time and predict ground procedures. This is the key to
the efficiency of ground operations. when the flightdeck will call up. “Using optimising ground operations to improve
Speaking at the Future Travel this data, we have become very accurate on-time performance.
Experience (FTE) event, Neil Harvey, at predicting when the flight will call up “You can compare aircraft ground
head of airline performance at LGW, for pushback, rather than just using the operations to a Formula One race team’s
says: “Performance at the runway is not blanket minimum turn time,” says pit-stop,” says Muzik. “All involved
as good as I would like. I lose about 20% Harvey. stakeholders and their actions are
of my punctuality at the airfield due to The benefit is that the earlier that air dependent on each other, and all have got
ground operations. traffic is informed of a departure time, to be in the right position at the right
“It is not the airlines’ fault or the the better able it is to schedule and time. For example, catering cannot enter
ground-handlers’ fault. It is also not an optimise the runway. In addition, the aircraft until the passengers have
airspace fault, but a collective one. We passengers can be called to the gate later, disembarked and so on.”
are all responsible for the entire journey making the stands more efficient. Therefore, if one turnaround process
when an aircraft comes in, turns around According to Harvey, a challenge is encounters a problem, the knock-on-
and goes back out,” adds Harvey. trying to find out the milestones that are effect could lead to the aircraft missing its
According to Harvey, LGW is happening on the aircraft from when it departure slot and being delayed.
particularly interested in stable arrives to when it calls up to depart. “At By capturing ground operations’
operations. The best way to optimise its the moment, I am reliant on many inputs process data, an airline can monitor its
runway capacity is to get aircraft to arrive from ground ops, the flightdeck or one of turnaround performance in real-time and

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24 I AIRLINE & AIRCRAFT OPERATIONS
Southwest Airlines calculated three aircraft
could do the work of four if they were in and out
of the gate in 10 minutes. Sometimes flight
attendants and pilots chipped in by cleaning to
achieve this goal.

automatically send a message to the

system telling it boarding has started.”
Manual data-gathering is problematic
for airlines, since they may involve many
service providers. Additionally, human
touchpoints are less accurate. “So an
alternative way to fully manually input
data is the use of artificial intelligence,”
says Muzik.
This new solution using deep machine
learning is called Deep Turnaround.
Employing artificial intelligence (AI),
Deep Turnaround has the capability to
learn by itself. If a provider’s truck is
always late for a particular flight, then
the system will account for this delay and
redefine the turnaround parameters for
that particular stopover.
This new method relies on video
cameras installed at the gate to enable the
proactively manage it. Further their position? Do they start punctually? system to recognise which truck is
performance analysis can determine why Do they finish in time? These three arriving and when. This means Deep
some flights are always delayed. It may measuring points have to be monitored Turnaround can accurately timestamp
be possible that an airline under certain for identifying areas of improvement. individual providers’ physical presence,
circumstances may prefer to extend, Monitoring service levels requires two and start and finish times automatically.
rather than shorten, the aircraft’s total data sets. The first is the time the cleaners Video-streaming the turnaround
ground time (TGT), because on-time are scheduled to start and finish their process is very objective because it makes
performance has a higher value. But task. The second is the actual time the it possible to timestamp the process
usually the set-up of a turnaround cleaners start and finish their task. These exactly when it happens, and not when a
management is intended to improve and two data sets have to be matched in real ramp agent or provider manually set this
shorten turnaround times, while staying time to make the airline aware of possible timestamp (based on their observations).
operationally stable. turnaround process delays on the day of Using cameras makes it possible to know
“Airlines that I speak to usually like operations. if the fuelling truck is in position and to
to focus on the day of operations, which The benefit for the airline is that it differentiate if somebody has started their
is important,” says Muzik. “So, if there is can penalise a provider if it is not tasks. Additionally, if five cleaners are
a delay at one airport it becomes reaching an agreed service level. contracted for an A350 turnaround and
necessary to speed up ground operations Alternatively, if the provider is exceeding the provider sends four, Muzik says it will
at the next to catch up. But if the airline service levels then the airline can credit or be possible to see this.
has got to do this every day for the same reward it. Steering providers to exceed It is predicted that in future all the
flight, there is clearly a problem. Long- agreed service levels is also part of how individual elements that make up an
term performance monitoring of ground an airline can optimise its turnarounds. aircraft turnaround will be able to
operations therefore allows the root cause The biggest challenge in turnaround identify themselves and their position. It
of the problem to be determined.” management is collecting the actual time will be possible for AI to count and
According to Muzik, the stamps, which can be recorded categorise individual providers, as well as
implementation of day-of-operations autonomously and/or be manually stairways and other generic ground
monitoring is to design a plan for each entered by the ramp agent, or individual equipment. In future if four cleaners turn
aircraft type, and, reference each providers. The manual time-stamping up to complete a job that is scheduled for
individual task to visualise the process is vulnerable to erroneous timings five, the system can automatically send an
turnaround process. As an example, the being entered. alert.
airline has to decide how much time the “For our turnaround management “Using video means it is also possible
cleaning of a A330 should take, and the solution, we currently use a mix of to use big data to monitor, analyse and
number of staff required. This also information that is gathered both optimise the boarding process,” says
includes the definition of the manually and automatically. Ramp agents Muzik. “A camera for the jetway can
dependencies, such as ‘cleaning starts one and/or providers, like caterers and count the number of passengers to
minute after the last passenger de- cleaners, may use mobile devices to time- determine when boarding is complete.
boards’. stamp their start and finish time,” says You might want to ask about the issue of
Then the provider’s service levels on Muzik adding, “Yet some data is data security, but the system does not
the day of operations need to be recorded autonomously, so when an recognise a person’s individual identity. It
monitored. Are the cleaners on time at aircraft door opens, the aircraft will

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 25 I AIRLINE & AIRCRAFT OPERATIONS
just counts the number of anonymous Forge can manage and optimise all terminal. It does this by using an ATS pull
people boarding the aircraft.” aspects of ramp operations. cart with an underground rail network of
Installing a camera at the airport gate According to Fadi Ghourani, director built-in channels beneath the taxiway.
also enables the analysis of boarding of connectivity sales at Honeywell The system’s fully integrated software
procedures, for evaluation of the most Aerospace: “Forge for the ramp provides can control all aircraft movements
effective ones. Using this methodology, it real-time data-sharing capability between between the runway and the terminal. It
might show that flights carrying all stakeholders in the turn process, is forecasted that the ATS system will
passengers with special needs are delayed including the airline, airport and ground increase airport throughput and capacity
because of longer boarding times. The handlers.” by 30%. This is achievable because ATS
outcome might be to give such passengers The software ensures there is no has the capability to stack aircraft much
an extra five minutes ahead of the official wasted time or effort during the turn, and closer together during taxi.
boarding time. everyone can carry out their tasks as Once an aircraft has landed, it will
It has been discovered that the high efficiently and effectively as possible, enter the ATS system by rolling its
volume of hand luggage that passengers without any service conflicts or delays. nosewheel onto a small above-ground
bring on flights is also causing delays. “The ramp is continually learning tow dolly. The tow dolly is powered by a
The result is to try to influence them to from the data gathered during each turn, 400 horsepower (HP) oil-cooled electric
check their carry-on luggage into the and adjusts the requirements and plans motorised pull cart. This is situated
hold. for future turns based on its prior directly beneath the taxiway with steel
According to Muzik, a real knowledge,” says Ghourani. “Over time plates covering the 2.6 ft deep and 4ft
improvement of the turnarounds lies with the system will compare performance wide trench. The pull cart then drives
long- and mid-term perspectives. Using data based on many factors.” along a monorail installed in the base of
and analysing performance data, it is These factors include, but are not the trench.
possible to determine the root cause of limited, to aircraft type, passenger load, Vince Howie, vice president and chief
some process delays. Once the cause of destination, airport stand location and executive officer of Aircraft Towing
ground delays has been identified, aircraft weather. Further integration across all Systems, says: “We call it a monorail
ground operations, and therefore overall ground support services, as well as system that works underground. So, the
on-time performance, can be optimised. aircraft electronic flight bags, will allow a tow dolly runs above the taxiway and the
deeper sharing of data in real time across pull cart pulls itself and the dolly along
all stakeholders from curb to gate. the underground monorail, while the
Honeywell Forge aircraft is attached. The electric motor
Honeywell Forge for the ramp is a turns two hydraulic motors that drive
software system that provides a complete Aircraft Towing System two sets of steel wheels which are locked
view of all services and their status Aircraft Towing Systems (ATS) is an onto the monorail for guidance and
throughout the turn. Utilising automated system that will pull aircraft traction.”
comprehensive software, Honeywell to and from the runway to the airport

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26 I AIRLINE & AIRCRAFT OPERATIONS
Increasing passenger throughput is one way the
WheelTug system improves ground operational
efficiency. The WheelTug self-taxi system will
make it permissible for narrowbodies to utilise
two or more jet bridges simultaneously.

aircraft in and see the system in action.

“Once we begin to get sales for the
pushback portion, we can complete the
entire system,” says Howie.
It is expected that the pushback
system will take about 30 days to install,
depending on the number of gates and
the amount of uninterrupted access the
installers have at the airport. Working at
night and covering the channel in the day
will mean the airport gates will remain
operational during peak periods. It is
estimated it will take a year to install a
full system at large airports.
To begin with, pushback will be
initiated by a ramp manager or ground
controller who will activate the system
The electric motor is very efficient designed the system to pull aircraft at a after receiving a signal from the aircraft’s
and powerful, and can reliably work in a maximum of 20 miles-per-hour, which is crew. The system will eventually become
compact space. The tow dolly is designed the speed at which they currently taxi.” fully automated as ATS develops
to work with aircraft ranging from small ATS will be able to push an aircraft additional software upgrades. It is
regional jets to an A380 or 747. The backwards from the gate. It can do this expected that the ATS software will fully
system has the capability to pull an because of the installation of a straight integrate with current air traffic control
aircraft weighing up to 1 million pounds. section of track, followed by a 90-degree (ATC) software.
According to Howie, it is expected to turn and another straight section. The According to Howie, pilots’ feedback
have two pull cars coupled together to straight sections are long enough to is positive because they can perform their
pull an ultra aircraft. ensure the aircraft’s nosewheel is perfectly post-flight procedures and paperwork,
Hydraulic ramps lock the nosewheel aligned. This allows the aircraft to be while the aircraft is taxiing to the gate.
into place, leaving pilots to then shut the pushed back, starting the turn to face the
main engines down, saving fuel and aircraft the opposite direction for
reducing emissions while leaving the departure every time. It is expected that WheelTug
auxiliary power unit (APU) running for the system will be able to compensate for WheelTug is a taxi system that uses
aircraft power. “Yet the crew still anomalies, such as a difference in aircraft an electrically-powered nosewheel which
maintains control of the aircraft. At any tyre pressures and the unequal drag this allows pilots to reverse and manoeuvre
time during the taxi they can overpower creates. their aircraft between the airport gate and
the system by applying the aircraft brakes Installation is broken down into two the runway. It can therefore do this
if needed,” says Howie. components. First is the pushback without using ground-based towing
The system will automatically drive component, and the second is the airport equipment or running its engines.
the aircraft to the correct gate. Once the taxiway component. “We believe that we WheelTug is forecasted to reduce
pilots have connected the aircraft to the can begin selling the pushback operational costs and improve on-time
ATS, they will have no further actions to component in early 2020,” says Howie. performance (OTP) by streamlining
complete. Integrated software means that For the past two years ATS has aircraft ground procedures.
the ATS will monitor and manage all contracted Oklahoma State University to The nosewheel electric motors can
other aircraft ground movements. The do the design and development work for move the aircraft forwards or backwards
system’s elimination of human touch the prototype. “We recently signed at speeds up to eight mph.
points reduces the risk of collisions with another contract with the Ardmore Air An optional camera and sensor
other aircraft. According to Howie, this Park, allowing us to install the working system means pilots will have enough
equates to cost savings in manpower, prototype. We are aiming to get a situational awareness to allow them to
equipment and insurance. pushback component installed by perform the pushback procedure without
“At airports today, airlines sometimes November,” says Howie. “We have a the need for wing-walkers or a pushback
have to wait for tugs, and wasted time company in Wichita Falls, Texas, called tug.
waiting at the gate leads to aircraft Precision Manufacturing and Tooling The system draws its power from the
missing their departure slot,” says Howie. (PMT), which is building the prototype aircraft’s APU, so WheelTug does not
“ATS will eliminate this problem by pull cart and tow dolly.” require power from a ground power unit,
holistically controlling all pushback and Ardmore Air Park is contracting with nor does it need additional batteries on
taxiing operations. As far as movements ATS to install the prototype and conduct board the aircraft.
go, we have conducted research of the testing. Since Ardmore Air Park is Using WheelTug for pushback and
speeds for aircraft at different phases of equipped with a 9,000 feet long runway, taxi will save about seven minutes from
the on-ground operations. We have potential customers can fly in their own pushback to the runway. A WheelTug-

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 27 I AIRLINE & AIRCRAFT OPERATIONS
equipped aircraft can park parallel to the Airport is taxiway- not runway- improve some parts of this time, but not
terminal without its engines running. This constrained.” all of it. The main benefit is that
will allow a narrowbody to access According to Cox adding more gates WheelTug reduces time that is lost due to
multiple jet-bridges, because the aircraft or runways will not increase throughput. waiting for a tug or wing walker,” says
can safely approach gates without The source of the delay is the taxiway Cox. “From getting ATC clearance, it
causing damage from jet blast. restrictions that only allow for one takes WheelTug 60 seconds to reverse
“Our goal is to challenge the aircraft at a time. WheelTug developed a and start moving forward.”
widebodied domestic market by replacing metric based on TGT. “The data that we The second period is backward roll to
it with narrowbodies that will use share relating to TGT is publicly taxi forward under engine power.
multiple jet-bridges,” says Cox. “Many sourced,” says Cox. “Depending on the airport, you could be
new airport gates in the Asia Pacific have Information like aircraft speed and pushed back between 50 feet or a quarter
been designed for widebodies. So, a lot of airport ground position are transmitted of a mile before you can start your
these airports already have second and from the aircraft every second, so it is engines,” says Cox. “With WheelTug,
third jet bridges per gate waiting, which possible to track individual aircraft and you can pushback, turn and taxi out,
could be used by narrowbodies.” know what speed they are travelling. This then start your engines when your jet
According to Cox, parallel parking information can sometimes help to blast is clear of the terminal area and
and using two jet bridges will reduce explain why a flight has missed its aircraft apron.
turnaround time by 13 minutes and departure slot. WheelTug has looked at the numbers.
improve TGT by 20-28 minutes. Cox “When people talk about taxi time “From the beginning of backward roll to
forecasts that passenger throughput per there is a lot of bad data within the the beginning of forward roll takes on
gate using two jet bridges will more than industry. Typically, when crews close the average 5.5 minutes. Doors closed to
double the rate embarkation and doors and remove the parking brake, the backward roll, can be several more
disembarkation. taxi has officially started. But often the minutes. Or even longer,” says Cox.
At some airports, a single taxiway the aircraft is not moving,” says Cox. “I am asked how far you can taxi on
width of one aircraft can provision up to “Maybe the aircraft is waiting for ATC the system. The main goal for WheelTug
20 gates. An aircraft stopped on the clearance or for the tug to connect or for is to get the aircraft rolling to break away
taxiway during pushback will block all the pushback staff to get into position. from the terminal area, then to a point
traffic. These delays greatly affect overall Even though the aircraft is not moving, it where pilots can begin running the
airport efficiency and OTP. can still be classed as taxi-out time. engines up,” says Cox.
“LaGuardia in New York has more WheelTug uses three different Along with a small control panel in
than twice as many gates as Chicago timestamps to delineate two periods and the cockpit, pilots use existing aircraft
Midway, but Midway handles 60% more forecast system benefits. controls to taxi the aircraft by WheelTug,
passengers per gate,” says Cox. “With The first period is doors closed to and can learn to operate the system by a
two operational runways, LaGuardia starting the backward roll. “We can help 60-minute computer-based training

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28 I AIRLINE & AIRCRAFT OPERATIONS
IAI TaxiBot can reduce taxi out time by seven
minutes for some aircraft types. By using
intelligent adaptive algorithms, TaxiBot learns
how to manoeuvre the aircraft at particular
speeds.

As the system mimics the taxiing of

the aircraft under normal conditions,
pilots do not need specialised training to
operate TaxiBot. “The pilot uses the same
controls that they would normally use
while taxiing. TaxiBot also simulates the
same feeling and behaves in the same way
as any aircraft taxiing under normal jet
power,” says Braier.
Training is completed by a computer-
based training kit which the pilot can
study in his own time. Therefore, there is
no need to take the pilot off the line for
simulator training or type training with
an instructor. “We are not modifying
anything within the aircraft, which is
quite a unique innovation,” adds Braier.
course. The system can be retrofitted in breakaway area is a safe place for pilots Restricted rearward view means the
the space of two overnight shop visits to start their engines without causing pushback is done by the TaxiBot driver
totalling about 150 man-hours. damage by jet blast to other aircraft, and not the pilot. Once the driver has
When should people look for ground equipment or personnel. With pushed the aircraft backwards and into
WheelTug? “We are planning on entering TaxiBot, an aircraft does not need to start position, the pilot will take control. The
service in 2020. We are scheduling a full- its engines in an area where the jet blast is TaxiBot driver will drive the unit back to
size demonstration at Memphis Airport a hazard. the terminal after it has separated from
later in November 2019. This is so airline As breakaway areas are communal, the aircraft.
operators and airport representatives can and can be used to facilitate as many as Taxibot has a fatigue management
see the system in action. The event will be 10 airport gates at a time, when an system that is designed to protect the nose
invitation only, so anyone who would like aircraft is pushed back into this area it landing gear. “During development we
to attend should contact us,” says Cox. denies pushback for other aircraft, so the worked very closely with both Boeing
resulting queue for aircraft to enter the and Airbus to design a system that does
breakout area is often the reason for a not change the limitations of the original
IAI Taxi Bot flight to depart later than scheduled. design,” says Braier. “The main limitation
TaxiBot is semi-robotic pilot- According to the business of any towing system is the strength
controlled hybrid aircraft-towing vehicle, development director at IAI, Ran Braier: introduced to the nose leg, since it is not
with the capability to drive aircraft away “Normally it will take the crew an designed to take extreme loads for long
from the airport gate to the take-off average of three to four minutes to start time.”
runway. TaxiBot allows the pilot to move the engines for a twin-engined aircraft in Using intelligent adaptive algorithms,
and manoeuvre the aircraft without its the breakaway area. By using TaxiBot, TaxiBot learns from pilot inputs to decide
engines running at the same taxiing speed the aircraft does not need to start its how it should best manoeuvre the
as normal taxiing (20-23kts). This engines in the breakout area and block aircraft, and at what speeds. According to
reduces fuel burn while lowering engine the gates for other users. Braier the system will automatically
foreign object damage (FOD) and CO2 “Using TaxiBot makes the pushback calculate the optimal operating taxiing
emissions. Additionally, TaxiBot is proven shorter, because the aircraft does not need speed to best serve the pilot’s braking use.
to improve the operational efficiencies of to be reversed to a faraway sterile place TaxiBot can be fully autonomous, yet
an airline by reducing taxi-out-times. before it can begin to taxi forward. Once airside regulations banning such vehicles
It is reported that TaxiBot can the aircraft has been pushed back the dictate that a driver remains within the
improve the time taxiing between the gate system goes from tug-driver mode to system and drives it back to the gate.
and the take-off runway by an average of pilot-driving mode, and then the pilot “When we were getting the system
four minutes. As airlines introduce newer will taxi the aircraft forward,” says certified, the regulations relating to
fuel-efficient aircraft with more intricate Braier. autonomous vehicles meant we had to
engine start-up procedures, it is When clear of the airport terminal, adapt the original design to include a
forecasted that TaxiBot will reduce the the pilot can then start the engines during driver. If regulations on the use of airport
taxi-out time for these types by about any phase of taxi. “Using the TaxiBot vehicles change, it will be easy to upgrade
seven minutes. system, the pilot can drive the aircraft out TaxiBots to their original fully autonomous
TaxiBot achieves this by streamlining of the gate area where it is permitted to configuration,” says Braier.
the taxi-out process, saving the need to start the engines. The main point is that
push the aircraft all the way into an the pilot can start the engines when he is To download 100s of articles
innocuous part of an airport’s apron ready to do so and save time during the like this, visit:
called the breakaway area. The taxi-out phase,” says Braier. www.aircraft-commerce.com

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 AIRLINE & AIRCRAFT OPERATIONS

The Pilot Common Project (EU Regulation 716/2014) is underway. Many

airlines seem to be unaware of the opportunities it provides. Read on to
understand the urgency for everyone to leverage it to tackle the challenge
of ever more congested skies that result in dissatisfied passengers and
high burden on already low margins. Davide Bardelli, director consultant
at Lufthansa Systems Airline Consulting, explains more.

Wake up call for airline operations

executives to take up the chances
released by the Pilot Common Project
“
Alea iacta est” said Julius Caesar, airline operations. Those who are not analysing current use cases and define
to emphasize that there is no preparing to interact properly with the how they need to change. c) Define the
turning back as he crossed the other stakeholders will undergo an new ones expected to bring substantial
Rubicon river in Northern Italy inefficient access to ATM resources and performance benefits. d) Derive the
with his army, and began the civil war jeopardise the expected systemwide requirements in terms of technology,
against Pompey and the Optimates. ‘The benefits. The airlines’ Operations Control people, processes and organisation as a
die is cast’ in European Air Traffic Centers (OCC) will play a crucial role as whole. e) Design a change roadmap and
Management as well: EU Regulation new ATM stakeholder. The solutions select relevant implementation partners.
716/2014 kicked-off the Pilot Common being deployed call for the full integration Let us not expect any solution to fall
Project (PCP) already five years ago to of OCCs’ decision processes into ATM, from the sky. All means for rising to the
start deploying the European ATM as a key overall success factor. Such a challenge are within reach.
Master Plan, marking a point of no role, however, challenges the OCC in
return for European aviation. terms of processes, workflows, span of
Its implementation is in full swing, control responsibility and staff Example: the AFUA use case
and deadlines are approaching. A first set competences among others. It is high time Already from January 1st 2022
of new ATM solutions will be fully the OCCs rise to this challenge to reap Advanced Flexible Use of Airspace
operational as of January 1st 2021. the efficiencies the PCP implementation (AFUA) is offering OCCs the possibility
However, many in the industry still do has started disclosing. to optimise trajectories by using airspace
not realise what the PCP is actually volumes as released from military use.
bringing. Even though there is no direct This can lead to up to 1.3 % operating
mandate for implementation to the Action is needed now cost reduction for each affected flight.
airlines, the PCP offers promising ATM related delays in Europe alone Nevertheless, it requires consideration of
opportunities to improve operational totalled 25.6 million minutes in 2018, many new requirements relating to OCC
performance in these challenging times. costing the airlines about 2 billion Euros. in terms of technology, organisation and
Everybody who flies in, out or through The news is not good for 2019. To people. As an example:
the European sky is offered the chance to protect profitability there is high interest
benefit in proportion to the size of its in operating as efficiently as possible, and Technology:
operations. Yet, understanding and making good use of all available chances l Access and process real-time
preparation are crucial factors to turn this to save money and preserve passenger airspace status information
chance into actual advantage. experience. Unexpectedly, only a handful l Decision support to identify eligible
of airlines are gearing up to get the most flights
out of PCO. Fewer than five in 350 l Automated info exchange to
Implementation mandate projects being implemented under the support CDM
The PCP mandates the deployment of umbrella of SESAR Deployment Manager If capability
27 ATM solutions that have reached intend to prepare OCCs for leveraging l B2B over SWIM
necessary maturity through SESAR, the the PCP. This is with quite limited use of
Single European Sky ATM Research, with the funding made available by the Organisation:
target dates staggered until end of 2024. European Union. l Information exchange to structure
The US Federal Aviation Administration It is a wake up call: airline executives the CDM process between the
(FAA) is working to the same timeline for should seriously consider initiating stakeholders
NextGen, the Next Generation Air concrete actions towards taking actual l Authority in CDM
Transportation System, planned to have advantage of the changes that are just l Roles (OCC and the Pilot-In-
all major components in place by 2025. around the corner. They should also Command)
consider EU funding opportunities. We l What-If across stakeholders
would like to suggest a simple approach l Rules to manage priorities and
A new role for OCCs to make sure the airline is on top of the constraints
The PCP lays the foundation for a game: a) understand the new ATM l CDM standard solutions
new trajectory, and a collaboration-based functionalities. b) Perform an
ATM, which has many implications for organisational readiness check by davide.bardelli@lhsystems.com

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30 I AIRLINE REVENUES

Cabin WiFi is changing the centricity of in-flight entertainment from

centralised servers to seatback systems to portable passenger tablets and
smartphones. The Internet of Things uses the WiFi network to help cabin
crew sell ancillary products and improve customer care.

Cabin wireless architecture

as an infrastructure for
multiple applications
T
he onboard WiFi network was time was cumbersome, with little
once the preserve of passengers meaningful functionality. Headend-centric
that wanted to connect their CBB was ground-breaking in the way Traditional embedded IFE systems use
laptops or personal digital it signalled the arrival of the wireless a single server that delivers content to
assistants (PDA) to the internet. Today, cabin network. Yet the rapid development individual seatback screens. These
the cabin wireless network is used to of affordable smartphones and tablets is headend-centric systems rely on wires to
support inflight entertainment (IFE) and of equal importance to the centricity of distribute audio-video on-demand
different cabin devices that can perform the IFE and today’s passenger use of the (AVOD) services and are prone to a single
myriad functions. aircraft’s WLAN. point of failure.
WiFi is a two-way portal that is Later systems have improved
commonly used to distribute electronic reliability, and store content on the built-
information via radio technology. Smartphones & Tablets in memory of the seat display units
Transmitted through a wireless access In 2007 the first LG Prada and Apple (SDUs). Content for this seat-centric
point (WAP) in the cabin, WiFi has an mobile phones with large capacitive system is updated by the aircraft’s server.
approximate range of 20 metres and is touchscreens were launched. This Since the system is not reliant on a single
compatible with smartphones, laptops generation of smartphone manufacturers server, faults are likely to be at an
and tablets. realigned their focus from a business to a individual seat level instead of an aircraft
Anyone with a wireless network consumer entertainment market and level. Faulty SDUs can be successfully
interface controller can attempt to access popularised the smartphone. replaced in flight, causing minimal
a WiFi network. As the technology is lot By 2010 smartphones had faster disruption to other passengers.
more accessible than a wired network, processors and longer battery life. The Introducing a WLAN to the aircraft
WiFi is more vulnerable to a cyber attack. development of larger screens enabled allows passengers to stream cache content
WiFi-protected access (WPA) technology smartphone users to easily consume a from the aircraft’s server directly to their
is used to protect the system from variety of multimedia content. Bluetooth PEDs. Since BYOD systems are PED-
unwanted interference from intruders. and the 4G cellular network increased centric, this eliminates the need for
Pioneering the onboard wireless local mobile connectivity options, while home complex wiring and SDUs, thereby
area network (WLAN) was Connexion and public WLAN hotspots made it making them an economic alternative for
by Boeing (CBB). The legacy high-speed easier for smartphone users to consume aircraft without an embedded IFE system.
Internet service was launched in 2004, films, music and TV shows.
and gave passengers internet access Apple introduced a new tablet
through a wired Ethernet cable or by a computer - the iPad - in 2010. The iPad Service Platform
wireless 802.11 connection. could seamlessly synchronise media Service Platform by Axinom aims to
Tariffs charged to access the service content and data between a cloud-based reduce the complexities in the
varied between airlines, but it was not network and a user’s smartphone. Using management, delivery and deployment of
uncommon for passengers to pay $9.95 the same software and operating system data, content and services on an aircraft.
for one hour of internet access; equivalent as a smartphone, the iPad had a larger Service Platform streamlines and
to $13.49 today. By using a Ku-band screen and more memory, which enabled simplifies the many systems that use an
antenna, a CBB-equipped aircraft could a large amount of media to be stored and aircraft’s WLAN by making them all
have a maximum download speed of 20 recalled effortlessly, without the need for work together seamlessly with
Megabits per second (Mbps), and a cellular or WiFi connection. standardised software architecture from
maximum upload speed of 2 Mbps. Technological advancements in the digital passenger, cabin and crew
Poor passenger uptake rates led to personal electronic devices (PEDs) systems.
CBB’s discontinuation in 2006. Yet CBB’s influenced the way airlines disseminated “With the Service Platform, we open
early demise was not due solely to high IFE. Instead of exclusively storing media avenues to create unique experiences that
usage costs, or the quality of the network on a headend server, airlines started to benefit the passenger, crew and service
infrastructure. It must be remembered imitate the home network and facilitate a providers. All this is done through a
that passengers’ mobile technology at the bring-your-own-device (BYOD) culture. single system that lowers the need for

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 31 I AIRLINE REVENUES
certifications,” says Axinom chief PED gives the passenger more choice in (CMS) enables airlines to create their
executive of operation, Ralph Wagner. the way they consume their onboard media product library and make Content
The system allows integration of content. This creates a very personalised Sets (CS). Typically, CSs comprise movies,
multiple products and services, such as viewing experience,” says Schuster. TV shows and music. “The CMS is where
IFEC, maps, the internet of things (IoT) It is necessary to process the media editors can see the properties of media
and advertising engines. By using Service content beforehand to allow common and change the descriptions and pricing,
Platform, operators can safely manage encryption and adaptive streaming. This and create bundled passenger offers,”
and deploy data and services. ensures that the content is formatted to says Schuster. “The CMS can be also used
Using the aircraft’s WLAN and real- work on the Wireless Seatback system’s for reporting analytics.”
time connectivity, operators can use tablets and a diverse mix of passenger The Content Delivery System (CDS)
Service Platform to create new revenue- PEDs. The process can also include multi allows data and media to be uploaded to
generating business models, such as audio and subtitles. the aircraft server via different
electronic shopping on board the aircraft. The Content Management System connectivity pipelines, such as cellular
“Operators have control over the
service orchestration, deployment and
resources,” says Wagner. “They can
request resources such as disk space or
sensor controls, and the operator can
decide how to allocate resources or
remove the services as needed.”
Service Platform uses Axinom’s
Inflight Services (IFS) component to
provide an interface to ingest and manage
different software and content packages.
The system also has a provision to give
third-party vendors access.
IFS can enable operators to build
smart systems for gathering and reporting
sensor-derived data, or acquiring
passenger loyalty data from the booking
systems.

Wireless Seatback
Axinom’s Wireless Seatback uses the
aircraft’s wireless network for both
passenger PEDs, and an embedded seat-
centric seatback system. The system is
designed around a single wireless
infrastructure that simplifies the IFE
software requirements by reducing the
need for different formats and encoding.
Stefanie Schuster, chief commercial
officer at Axinom, says that a key feature
of the Wireless Seatback System is the
‘WiFi-network infrastructure’. This is
because WiFi simplifies the IFE system by
eliminating the need for lots of
unnecessary complicated wiring, thereby
lowering the aircraft’s overall weight and
its maintenance costs.
“Traditional IFE screens are wired
with cables, and these require a lot of
maintenance. If one cable breaks it can be
problematic and expensive to gain access
and fix the fault,” explains Schuster.
Wireless Seatback uses an Android
tablet device that is paired to the aircraft’s
network and installed into the passenger
seat. As the system is wireless, it is also
possible to pair a passenger’s PED to the
seatback to give a dual screen experience.
It is possible to synchronise the PED
and the seatback tablet together and
transfer content between them. Once
paired to the seatback, the PED can be
used as a remote control or to stream
preloaded content to the larger seatback
display.
“Pairing both seatback screen and a

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32 I AIRLINE REVENUES
Seat-centric systems store media content in the
seatback display unit’s memory. Typically
outages are at seat-level and do not affect the
whole aircraft.

primary passenger PED-centric system,

but WiFi Technologies is developing it to
synchronise with an embedded SDU.
It is expected that WiFi Technologies’
embedded seat-centric system will use a
light seatback screen. It is estimated the
touchscreen SDU will weigh about 400g.
“The advanced materials we are using
will make the installation process very
easy, and will reduce the overall aircraft
weight considerably,” says Yves
Hendrickx, chief executive officer, WiFi
Technologies. “The SDU will need a
power source and will be touch screen
and satellite networks, or by WiFi well as reporting to business-to-business enabled.”
connectivity, SSD and USB connections. partners. Using a smart network system that
Schuster describes how the CDS can “Because of the AD Server, you can monitors and manages the WLAN, Air
control which pipeline should be used to handle payments and entitlements, so this Streamer can provide WiFi for up to 500
send data to the IFS server. “The IFS is really in the background,” says passengers through one access point. “We
includes IFEC software components built Schuster. “The payments work in real do not increase the power of the WiFi
into the in-flight server,” says Schuster. “If time through connectivity where the transmission,” says Hendrickx. “We
incremental updates are needed, or if system directly connects with a payment manage it better, so that Air Streamer can
something is changed in the CMS, the gateway.” provide a very unified WiFi signal for the
CDS will send these changes to the IFS. If aircraft do not have external whole cabin from one access point.”
The CDS is the ‘postman’ between the connectivity, passenger credit card data Air Streamer is DRM-compliant and
ground and the aircraft’s IFS.” must be stored onboard the system, WiFi Technologies has arranged licensing
The CDS has a bi-directional which has to be PCI-compliant. “This rights with many TV companies, making
functionality that enables uploading and means there is a lot more complexity to it possible to upload a diverse selection of
offloading of content sets to and from the the project,” says Schuster. “Some TV shows from around the world.
aircraft. Offloaded data can then be elements may require development to “Research shows that passengers are
processed through the CMS for analysis. become PCI-compliant.” more likely to watch TV shows than
This will allow the airline to view Axinom builds in reliability by movies. We can get the right approval
passenger IFE preferences and revenue uploading the most popular content onto from any TV network like the BBC, CNN
trends, such as eCommerce performance. the memory of the seatback tablet. This and NBC to name a few,” says
The IFS server administers adaptive hybrid approach means the system can Hendrickx. “If an aircraft is operating
streaming, advertising and PCI payments always run independently from the out of a specific location we can make
inclusive of Digital Rights Management aircraft server in the event of a arrangements with local TV stations.”
(DRM), ensuring that all content licences connectivity issue. Content can be updated while the
are adhered to. “An aircraft full of passengers aircraft is on the ground by the gate. This
“If you want to stream content then streaming movies at the same time will means passengers can access the latest
you need the correct DRM to give you put a large load on the WiFi network. magazines, newspapers and news
the necessary licences. This is important Pre-positioning parts of the content on to broadcasts. The server’s large capacity
because it is Hollywood content that the android tablet makes the network means it is possible to store about two
needs to be protected and encrypted,” much more stable,” says Schuster. “You months of viewing content.
says Schuster. cannot store everything on tablets “Air Streamer’s content library is so
The IFS can distribute containerised because they do not have the space.” vast that it will be able to provide a high
media content to the passenger-facing By analysing data, it is possible to level of personalisation, similar to the
seatback IFE display. All connectivity work out what is the most popular passenger’s Netflix or Amazon Prime
between devices is done by the WiFi. content and where best to store it. subscription they access at home,” says
When the IFS is linked to the Hendrickx.
Connected Services module it will help
personalise the passenger experience by Air Streamer
accumulating data from the airline’s WiFi Technologies’ Air Streamer The Internet of Things (IoT)
booking system, and, with the assistance concept uses a 50Tb server to create a The IoT is a computing concept that
of leverage recommendation engines, will localised content cloud that passengers describes the idea of everyday physical
create a unique passenger IFE experience. can access by pairing their PEDs to its objects being connected to the internet.
Connected Services also manages WiFi inbuilt WLAN. By connecting devices such as sensors or
monetisation and payment gateways, as Air Streamer was designed as a actuators, it is possible to use the IoT to

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 33 I AIRLINE REVENUES
monitor inanimate objects and to passenger’s movement, their well-being technology can make an impact is the
perform a physical movement or action. can be directly and wirelessly reported to aircraft’s galley area. “The sensor does
ViatorAero by FliteTrak employs IoT a cabin crew portal or tablet, so that not care if it is monitoring a seat or galley
technology in a variety of ways to flight attendants may easily identify if a area,” says Burnett. “This is because the
improve passenger comfort throughout passenger is unwell, agitated or fearful of sensor only sees data, and by changing its
the cabin, and to advance cabin crew flight. parameters a sensor can send reports
performance by helping them complete Sensors that monitor passenger seat about many things.”
their everyday tasks. movement can also analyse wear and tear A sensor can measure the temperature
Andrew Barnett, managing director and predict seat maintenance. “By and monitor the usage of different galley
FliteTrak, says: “ViatorAero systems and implementing IoT technology, it is appliances such as the coffee percolator.
sensors are designed to work on their possible to know when a seat part like an By monitoring usage patterns, it is
own, but they can also leverage off any armrest is about to fail,” says Barnett. possible to inform the airline when an
existing WiFi infrastructure. The “In addition, sensors can notify the appliance needs servicing or replacing.
technology is driven by an IoT operator that the seat foam has degraded Sensors added to a service trolley can
framework that we have adapted to fit to a level that will make it uncomfortable adjust the trolley’s operating temperature.
within the cabin.” for the passenger.” This will ensure that food or drink will be
ViatorAero typically uses its own Instead of waiting for the seat to fail, ready to be consumed fresh, and at the
server that is dedicated IoT. “We prefer to it is possible, using sensor-led data, to right temperature.
use our own server because of the trigger a seating maintenance plan that IoT technology used in toilet sensors
experiences we have in other markets, fits into the aircraft’s pre-scheduled can sniff and detect anomalies in the air
where the server is working maintenance cycle. to notify the crew if a lavatory needs
autonomously, so there are no inter- ViatorAero has a seatbelt sensor to attention. Additionally, it is possible to
operability issues,” says Barnett. allow the cabin crew to know when a monitor and manage water usage to
It is possible to load the operating seatbelt is open or closed. Without the ensure water is not overused, thereby
software onto the aircraft’s existing need to use batteries, the seatbelt system resulting in an incapacitated toilet.
server. Yet from a retrofit point of view, it uses the same technology that monitors According to Barnett, passengers will
makes more sense to install a new server the overhead storage lockers to denote if not complain about the inconvenience
and take advantage of the inherent they are open or closed. caused by broken facilities, such as a
reliability and seamless software Using the technology for take-off, it is lavatory, to the cabin crew. Typically,
integration. then possible for cabin crew to simply today’s passengers post bad customer
Sensors connected to the cabin WiFi view a portal to know if all seatbelts are experience reviews on social media, often
can be used to monitor a passenger’s closed and the overhead bins are locked. giving the operator a bad name.
movement on the seat. By data-profiling a Another area where the same “The challenge is to get airlines to

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34 I AIRLINE REVENUES
Sensors in the lavatory can smell the air.
Notifications of any abnormalities can be sent to
a cabin crew portal or smart watch.

are in the process of translating their

recommendations into regulatory
directives.
“The European Network and
Information Systems (NIS) directive
encourages European Union members to
share cyber security information. This
will help cyber security transition to a
more proactive approach,” says Gilges.
For airline operators this translates to
continuous security monitoring, and
anomaly detection for usage behaviour
on the wireless network.
VT Miltope collaborates with
software partners Galgus and
recognise what is really meant by of aircraft. By saying “prepare the cabin RazorSecure to incorporate a diverse mix
passenger experience and comfort,” says for take-off,” Ellen will lock all the of technologies to optimise cyber-secured
Barnett. “If sensors are deployed in first overhead bins, correct the lighting and wireless cabin networks. According to
or business class, then it is possible to tell ensure all seats are in the upright position Gilges there are two key elements that
when a passenger is asleep or awake. If a and window blinds are open. result in cyber security protection.
passenger is asleep, then the cabin crew Once the aircraft has transitioned to “To begin with, AI-driven machine
need not bring them breakfast until they an altitude set by the airline, overhead learning of the RazorSecure solution
are awake.” lockers will unlock and passengers will be monitors anomaly detection throughout
For low-cost airlines the business case able to adjust seats and blinds. It is the network,” says Gilges. “Cleverly the
is about fast turn times and increasing possible for seats to have heating and system identifies the normal utilisation
ancillary revenue through onboard sales. cooling pads that will adjust within a wireless network and is therefore
“Implementing the use of IoT to do automatically to where in the world the able to recognise any abnormal
checks and monitor passengers allows the aircraft is operating. Boeing’s philosophy behaviour.”
cabin crew to be better focused on selling is that the cabin will be able to take care Once abnormal behaviour has been
more services,” says Barnett. “If the of itself. identified, the system starts rectifying
aircraft runs into turbulence, the cabin actions, triggered by the location,
crew can be more effective by position and tracking feature within the
concentrating on the passengers that have Security Galgus CHT (Cognitive Hotspot
not fastened their seatbelts.” Deploying a high number of wireless Technology) solution.
According to Barnett, the whole IFE and IoT applications on the aircraft’s In contrast to the old cyber security
public transport industry has become WLAN increases the risk of a possible philosophy, the new approach allows for
commoditised. Therefore, passengers are cyber-attack. This is because adding more the system to become smarter with each
not recognised as individuals anymore, devices to the WLAN increases the iteration, thereby resulting in future-proof
and are just a number in a section of the number of touchpoints, which are often protection.
cabin. “You can use technology to bring used as gateways by computer hackers to
some of that personalisation back into unlawfully access a system.
travel,” he adds. Since today’s cyber threats are Conclusion
“The airline can combine interactive evolving very rapidly and creatively, the Wireless cabin networks are fast
data with its loyalty programme. This question is how to find the right becoming a necessity within the aircraft
means cabin crew will not only know if a protection against these ever-changing cabin. As more domains and devices are
passenger is asleep, but by profiling the threats. According to Markus Gilges of feeding off the WLAN, its utilisation is
passenger loyalty programme, they will VT Miltope: “Traditional responses to growing exponentially. It is possible that
know what sort of drink they would like cyber security events address ‘known the WLAN will become saturated due to
when they wake up,” says Barnett. threats’ via static and passive tools such high demand. This will result in sub-
Mirroring ViatorAero’s utilisation of as firewalls or authentications. As these optimal performance of the network, and
IoT is Boeing’s intelligent cabin assistant methods are only useful against known will subsequently lead to passenger
called Ellen. Named after commercial attacks, the evolution of cyber threats dissatisfaction.
aviation’s first female flight attendant requires a more proactive and dynamic Yet it is possible to introduce
Ellen Church, Boeing’s system represents approach.” individual networks to service different
an extra crew member. Therefore, future cyber security applications, such as IoT and IFE.
Actuated via voice-commands and the solutions need to stay ahead and evolve
WLAN, Ellen is introducing aircraft type faster than attackers to remain effective. To download 100S of articles
commonality to cabin crew so that they In a move to future-proof cyber security, like this, visit:
can easily switch between different types several national and international bodies www.aircraft-commerce.com

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 35 I MAINTENANCE & ENGINEERING

Iberia Maintenance is one of three engine shops

I
beria Maintenance has made it clear
that, while it no longer provides providing established capacity and capability for
services for RB211-535 engines
under Rolls-Royce’s TotalCare®
much-needed RB211-535 shop visit work. The
contracts, it continues to remain a major facility expects 52 shop visits in 2019.
technical and maintenance provider for
the engine over the long-term.
This is contrary to the incorrect
statement that Iberia Maintenance was
expected to exit the RB211 maintenance
market within the next two years,
Iberia stays firm in
although it could still remain as an
unauthorised shop (see StandardAero is
life support provider for the RB211-535,
Aircraft Commerce, page 36, April//May
2019). Iberia Maintenance has made it
RB211-535 MRO
market
clear that: first it will remain a Rolls-
Royce-authorised shop; and that second
it will continue to provide maintenance
for engines that are not under TotalCare
contracts. This will be for the end-of-life
service.
Given that the 757-200 is proving While a large number of the RB211- converted to freighter configuration. This
popular as a freighter, and that the oldest 535 fleet is believed to be under provides a potentially large market for
and youngest aircraft in service are 36 TotalCare contracts, a similarly large RB211-535 maintenance and technical
and 14 years old respectively, it can be number is also managed under different support for the long term.
expected that demand for RB211-535 styles of contract. The portion of engines The reduction in shop capacity for the
technical support could last until 2040. not under a Rolls-Royce Care programme RB211-535 and the 757-200’s continued
Iberia Maintenance in fact has long- is about 40%. popularity as a freighter has resulted in a
term contracts of up to eight years for Iberia Maintenance, for example, has shortage of serviceable engines. This has
engines that are not under TotalCare 10 different customers. Iberia been exacerbated by the retirement of
contracts. Iberia Maintenance can Maintenance expects to conduct 52 shop large numbers of engines with zero
manage engines on a pure third-party visits in 2019, of which 22 will be pure maintenance life. The effect has been to
basis. That is, on a time and material, third-party contracts. The remaining 30 push up values of any engines available.
fixed price or a not-to-exceed style of will be TotalCare engines that will It is inevitable that some engines will
contract. continue to be maintained by Iberia require shop visits. Iberia Maintenance is
The maintenance and support market Maintenance until StandardAero reaches one of two engine shops in the western
for RB211-535 engines not under full capacity. hemisphere.
TotalCare contracts is left to a limited Fleet data shows that there are more
number of shops. These include Iberia than 370 active RB211-powered 757- To download 100s of articles
Maintenance, Ameco Beijing and 200s and another 39 RB211-equipped like this, visit:
StandardAero. The Texas Aero Engine 757-300s in service. Of these, 208 are www.aircraft-commerce.com
Services Limited (TAESL) shop that was a freighters. Up to 60 757s could get
joint venture between Rolls-Royce and
American Airlines was shut down in
2016. Rolls-Royce is transferring all
RB211-535 work out of its Engine
Overhaul Services (EOS) shop in Derby,
UK.
Iberia Maintenance not only has the
capability for all types of shop visit
maintenance up to Level 4, it also
performs parts repairs.
A Level 4 shop visit is a full overhaul,
in which the engine is fully disassembled
into modules and piece parts. A Level 4
shop visit allows the replacement of life-
limited parts. Rolls-Royce is committed
to providing parts for the engine for
another 20 years.

Although Iberia Maintenance will no longer

perform work on RB211-535 engines under
TotalCare contracts, it will remain as one of three
worldwide approved shops for the engine type.
It has extensive capability, expecting to perform
52 shop visits in 2019.

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36 I MAINTENANCE & ENGINEERING

Has the landmark commercial agreement signed between IATA and CFM
opened up the aftermarket to increased competition? Can we expect
attitudes to change towards PMA parts and DER repairs? Is there any
noticeable difference since the agreement came into effect?

An initial appraisal of
the agreement between
CFM & IATA
C
FM International (CFM) is a communication and contracting. These to which it will be accountable. CFM will
50:50 joint-owned company documents confirm, clarify and be liable to fines should there be a breach
formed by Safran Aircraft complement CFM’s aftermarket practices, of policy.
Engines of France, known as and facilitate CFM’s customers awareness
Snecma until 2016, and GE Aviation (GE) of its principles. IATA intends to expand
of the United States (US). the application of such policies to other A change in attitude?
The product line-up comprises the stakeholders in the aerospace industry. The following excerpts from the
CFM56 and LEAP single-aisle commercial The commercial agreement was due to Conduct Policies and Implementing
jet-engine families. come into effect on 28 February 2019, Measures highlight the contentious areas
On 24 April 1982, the CFM56 engine seven months after it was signed. that led to the establishment of the
entered service aboard a Delta Airlines DC- The prelude to the agreement stems agreement and CFM’s stance and
8-71 powered by a CFM56-2. from a formal complaint filed by IATA commitments to uphold the terms.
As of June 2019, with seven variants with the Directorate-General for l The mere installation of non-OEM
having been developed over 37 years, CFM Competition (DG-COMP) of the European parts and/or repairs in the engine does not
reports that upwards of 33,400 CFM56 Commission (EC) in March 2016. The in itself render the warranty void.
engines have been delivered to more than DG-COMP had contacted industry l CFM does not refuse to service
600 operators globally. Moreover, the stakeholders, including IATA member engines because they contain non-OEM
CFM56 is the first engine family in airlines, in 2015 to corroborate claims that parts or repairs.
aviation history to accumulate one billion CFM was abusing its dominant market l Parts approved by the Federal
flight hours (FH), which equates to more position in relation to the control of Aviation Administration (FAA) under 14
than 200 billion miles flown. aftermarket services and anti-competitive CFR Part 21, and 14 CFR Part 43, and/or
Variants include: the CFM56-3B and - practices. Having reached a voluntary approved by the EASA under Part
3C designed to power the 737 Classic agreement with CFM, intended to address 21.A.109 and Part 21.A.451, are eligible
family; CFM56-5A and -5B for the A320 IATA’s concerns effectively, IATA later for installation in CFM engines.
family; CFM56-5C for the A340 family; withdrew the complaint, and in doing so l CFM agrees to waive fees (both
and the CFM56-7B for the 737 Next eliminated the call for the EC to intervene. upfront fee and royalty) for engine
Generation (NG) family. The landmark agreement has overhaul shops for the use of its engine
On 31 July 2018, CFM and the implications beyond CFM, and is intended shop manual (ESM), which encloses
International Air Transport Association to be an example for other engine overhaul instructions and fully disclosed
(IATA) signed a commercial settlement manufacturers to follow. CFM will apply repairs. These fees are charged under
agreement concerning CFM’s maintenance, the terms to all of its commercial engines, CFM’s purchase licence agreement (PLA)
repair and overhaul (MRO) policies and including the new LEAP series. GE has and will not require any other form of
activities. ratified the Conduct Policies by agreeing to financial compensation for such use by
Under the terms of this agreement, apply them to its proprietary product line- shops overhauling CFM engines.
CFM reaffirmed its commitment to up of commercial aircraft engines. l Parts that have been repaired with a
maintain and foster robust and open Beneficiaries of the agreement include repair approved by an FAA-designated
competition within the MRO market, and IATA, CFM’s airline customers, aircraft engineering representative (DER) under 14
published its Conduct Policies and lessors, third-party MRO facilities and CFR Part 183 and/or an EASA DOA
associated Implementing Measures. These parts manufacturers. holder in accordance with Part 21, Subpart
specify its product support policy and The Conduct Policies provide greater J and related Acceptable Means of
guidelines related to licensing, warranties, transparency into CFM’s aftermarket Compliance and Guidance Material, are
servicing, technical support, repairs, practices. CFM has agreed to hire a trustee, eligible for installation in CFM engines.

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38 I MAINTENANCE & ENGINEERING
The CFM56-5B is the engine of choice for the
A320 family, having been selected to power
nearly 60 percent of the aircraft ordered. The
CFM56-7B is the exclusive engine for the Boeing
Next-Generation single-aisle airliner. In total,
over 8,000 CFM56-7B engines are in service on
737 aircraft

addition, the OEMs’ latest counter to PMA

is to bundle services by offering
significantly reduced pricing on material
support through a Next Higher Assembly
(NHA). Under an NHA, an assembly of
parts and components is sold as one item,
rather than being supplied as single spare
parts. An OEM will offer heavy discounts
on a particular NHA that faces heavy
competition from PMAs. This is where the
customer agrees to buy all the other parts
they provide, at full list price and at a
modest yearly price escalation, because the
other NHAs they offer may not have any
competition from PMAs,” says Davis.
Graeme Crickett, executive vice
l CFM will include in relevant policies to judge any effects. “For aftermarket president, head of technical at SMBC Aero
and procedures for departure record (DR) companies, it is a great marketing tool,” he Engine Lease B.V., a global aircraft engine
requests, an explicit statement that the says. “One of the largest OEMs has leasing company specialising in medium-
presence of non-OEM parts and repairs is answered a lot of long-standing customer and long-term leases, does not foresee
only relevant to a DR request to the extent issues concerning the use of PMA parts much, if any, change in response to the
that it affects CFM’s ability to perform the and components. The agreement’s general agreement.
relevant engineering analysis, and that the acknowledgement of ceasing the practice of “It was not such a big issue before the
mere presence or use of non-OEM parts, denying warranty and access to manuals is investigation, and still does not appear to
or repairs unrelated to the DR request, do a totally transferrable discussion with any be a big discussion point in the industry,
not preclude a DR consideration. customer, and that has additional growth that I know of,” he says.
l CFM will regularly train its customer opportunities and hurdles for OEMs.” He expressed surprise, however, at the
support organisation, and other Tom Davis, executive vice president of exclusion from the investigation process of
departments that make official statements product management at Wencor has seen a certain industry-leading engine OEM
on behalf of CFM that are related to non- an uptake in the acceptance of, and wish to that is widely known to operate a closed
OEM parts or repairs, to ensure that use, PMAs across the world, although this MRO system.
communications related to non-OEM parts is not necessarily attributed to the “Whether or not non-OEM-approved
or repairs are based on data that validates IATA/CFM agreement. Instead, it is largely PMA parts and DER repairs will play a
the proposed communication. driven by OEMs’ inability to support major role in the future development of
customer needs. Availability is one of the engine maintenance will probably depend
Will this agreement lead to the desired leading reasons that airlines are looking to on how much penetration can be achieved
increased competition in the aftermarket; use PMAs. in the MRO market. There is a growing
acceptance of parts manufacturer approval “The aftermarket PMA produced by aircraft and engine leasing market today, as
(PMA) parts and components, and DER Wencor will, at a minimum, have the same the latest technology and assets are
repairs in light of CFM’s warranty policy level of engineering, performance and becoming increasingly expensive, so it
based on cause-and-effect; and so durability as the OEM part,” says Davis. makes more sense to lease rather than
contribute to lower maintenance costs per “Quite often the PMA will include own. Lessors are particularly keen to
engine flight hour (EFH), and ultimately reliability fixes at a price far below the maintain asset value and have caveats
airline operating costs? Will market OEM’s part. In addition, PMA parts are against PMA parts and DER repairs in
perceptions of the use of alternate parts almost always available for sale and fill the their agreements, so the potential market is
alter, and is there any indication of new gap for OEM stock-out issues. Availability smaller than some people realise,” explains
opportunities for third-party providers of is currency.” Crickett.
engine parts and MRO services? Davis highlights that the agreement “The OEMs have taken a greater share
Wencor Group is an aftermarket addresses certain aspects of the commercial of the MRO market with specialised Fleet
aerospace company offering total material attacks that were deemed unacceptable by Hour Agreements (FHAs) dominating the
solutions, by providing replacement PMA the EC, such as denying warranty, and new engine deliveries. It would stand to
components across more than 30 ATA limiting availability of Instructions for reason that the OEM FHA would bar
chapters and with heavy emphasis on new Continued Airworthiness (ICA). PMA parts and DER repairs,” continues
PMA development, distribution, and “Pricing pressure in the business is Crickett.
MRO. The strategic focus is on lowering constant. The OEMs have been matching “Engine parts can be incredibly
airlines’ cost of ownership. prices where competition is fierce from expensive to buy and the industry seems to
Andy Shields, vice president of PMAs, but then escalating prices on parts be in a race to arrive at cheaper airfares
engineering at Wencor, deems it too early where there is no or limited competition. In and operations. So it is logical that airlines

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 39 I MAINTENANCE & ENGINEERING
would seek lower shop visit (SV) costs,” continues Colombo. fees, which were previously payable, has
says Crickett. “SGI’s opinion is that this agreement enabled Aero Norway to reduce its fully-
SGI Aviation is an independent advisor could, in principle, contribute to having a burdened rates, which previously included
to the aviation industry providing technical more competitive and open engine a consideration for licence fees and a
consulting and advisory services on aircraft aftermarket,” says Colombo. percentage of revenue per engine, with
and engine asset management, and safety IATA’s agreement with CFM was customers directly benefiting from the
regulations. Industry experts within its equally intended to serve as an example for savings.
team have been working on PMA and other engine OEMs to follow, which SGI “We see it as a benefit since we are an
DER repairs over the years, and have does not believe will happen in the near independent engine shop. We hope it will
gained valuable insights into CFM’s future. Additionally, SGI does not consider open up the opportunity to expand into
practices. SGI has been solicited to advise that CFM’s aftermarket policies and the LEAP engine and to perform OEM
on this issue by a number of its customers. activities differ from its competitors. parts repairs in-house. We are not paying
“We understand that the aim of the “We believe that action taken by CFM royalties anymore, which is of course a big
Conduct Policies is to provide a more is an initial step and will not have a major benefit to our customers. It allows us to be
transparent view of non-discriminatory impact on the aftermarket environment. more competitive in the bidding process
CFM policies when dealing with an engine The current support network for CFM56 and to position ourselves better in the
operated and maintained with non-OEM and IAE V2500 engines is huge, with many market,” says Veenstra.
parts and repairs,” says Danilo Colombo, independent shops already approved to Veenstra explains that not many
programme manager at SGI Aviation. maintain those engines. In terms of PMA customers request the use of PMAs and
“When the aviation industry first learnt parts and DER repairs, we do not see an most prefer OEM parts.
about the IATA/CFM agreement, there was immediate benefit, especially where the Aero Norway has held talks with CFM
an immediate positive wave of expectation aircraft and engines are leased, and the use and hopes to obtain a licence for the LEAP
among stakeholders, particularly airlines, of non-OEM parts is not permitted per the engine. Veenstra expects it will take at least
independent MROs, PMA manufacturers, lease agreements,” says Colombo. five years to achieve full overhaul
and DER repair developers. The Aero Norway AS is a CFM-authorised capability. A limited number of repairs
impression, and hope, was that an engine independent engine MRO specialist located could be feasible earlier, however, but that
OEM would officially accept a non-OEM at Stavanger Airport on the west coast of would depend on when the licence is
part as an alternative to the OEM one. At Norway, with capabilities on the CFM56- granted.
the same time, several lessors had concerns 3, -5B, and -7B engines. “CFM will need support going
about a hypothetical negative impact on Rune Veenstra, chief business officer, forward, based on the volumes, because
the future asset value of engines that had sees the IATA/CFM agreement as a good there are a lot of these engines coming into
always been maintained in accordance opportunity for Aero Norway. Since the the market,” adds Veenstra.
with OEM criteria, compared to engines announcement came into effect, CFM’s Jet Engine Management (JEM) in the
with non-OEM parts and repairs,” decision to waive licensing and royalty United Kingdom provides all-

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40 I MAINTENANCE & ENGINEERING
CFM has set the baseline by providing greater
transparency into its aftermarket practices. Will
other engine manufacturers follow this example
and sign similar agreements?

anti-competitively, Hankins considers that

it probably has one of the most open
maintenance structures in the world.
“If you look at the likes of Rolls-
Royce, the access that shops have had to
licensing is more stringent than with CFM.
You might counter that with respect to the
LEAP engine. CFM has been more
resistant to granting licences for
maintenance, and has restricted the market
to those who invested in the product.
Certainly, from the perspective of older
CFM products, I see it as an open field.
There are plenty of third-party options,
and if you want to fit non-OEM parts, it is
possible to do so.
“There is one critical aspect of the
LEAP engine right now when you consider
the technology,” continues Hankins.
encompassing aviation powerplant agreements which carry clauses that “There are a lot of unknowns around the
consultancy support for airlines, lessors, prohibit their use. This is simply to protect actual repair costs of the parts. As a result,
and financial institutions worldwide, in the value of the asset. If you consider any most operators are signing power-by-the-
technical, financial and commercial jet agreement signed within the past five years, hour (PBH) agreements. By entering into
engine management for, among others, the it would invariably have wording to that this type of contract, the decision on what
CFM56 engine family. effect, to prevent the use of non-OEM parts are fitted to the engine is down to the
Nick Hankins, senior engineer at JEM, parts, so you will see very little change in shop you signed with. In the case of the
considers it too early for any substantial the short term. There may be some LEAP engine, it is all OEM hardware so I
change to be noticed on the back of the progression as and when these lease would be surprised to see any significant
agreement. In terms of exposure in the long agreements come to an end and lessees movements on the availability of new
run, he says there are two reasons why start negotiating new terms on their parts. In contrast, the CFM market sees a
significant changes may not be seen. contracts,” expands Hankins. lot of time-and-material (T&M) SVs,” says
“On the one hand, there are those “If you are an OEM-aligned entity, and Hankins.
who, owing to their technical background, therefore not considering the use of non- Hankins thinks it will be unlikely for
would never consider using non-OEM OEM parts, you will use a certain category new engine shops to set up business, citing
parts,” says Hankins. “On the other, we of overhaul shop,” continues Hankins. “If the substantial costs to come to market as
have those who are more open to the you are more open to using PMA parts, a restrictive factor. He also acknowledges
prospect. Will this agreement make any you will look for third-party shops that use there is an industry-wide shortage of
difference to the latter? Is it going to make them. If you have already used those shops experienced manpower, which leaves little
those who are not using PMA parts now to fit non-OEM material, the signing of the choice but to pay staff a premium in a new
change their mind? In the case of these agreement will make no difference to you. shop. In doing so, however, you run the
users, I would be surprised if I saw them “For me, the overarching technical risk of pricing yourself out of the industry
making a policy change. In most cases, decision is whether or not you will be in terms of winning future business.
people choose not to use PMA parts doing the right thing by fitting non-OEM “There are a lot of players in the CFM
because they lack a technical parts,” adds Hankins. “That has more market already. We do not have enough
understanding of how they perform,” says precedent than some of the things that the slots to cover for all of the SVs. Moving
Hankins. IATA agreement has defined.” forward, however, as SV demand starts to
Hankins continues that the Hankins foresees a potential juncture drop back down, which I am sure it will
manufacturers of non-OEM parts will in the future when more emphasis will be over the next few years, there should be
consider that there is no cause for concern. placed on minimising maintenance costs. ample capacity there,” says Hankins.
The fact will always remain, however, that “In 10 years’ time, the -5Bs and -7Bs Engine Lease Finance Corporation
these parts are not tried and tested in the will start reaching the point where there (ELF), headquartered in Shannon, Ireland,
same way as an OEM part. There is always will be more engines available than there is is a leading independent spare engine
that potential for heightened risk by using demand for them. It will then cost more to financing and leasing company, specialising
PMA parts, which is going to make some put an engine through an SV than to buy in the provision of flexible short-, and
airlines and operators wary of them. one on the market. You will effectively medium- to long-term engine lease support
“One of the key reasons for the limited treat it like a green-time engine just to get packages.
uptake in the adoption of non-OEM parts you by for a few years,” explains Hankins. “The IATA/CFM agreement ticked a
is that most engines are traded under lease In terms of whether CFM has behaved number of boxes for different people, but

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The decision to incorporate PMA parts and DER
repairs is driven by factors such as a technical
understanding of the benefits, lack of
availability of OEM parts, caveats in leasing
agreements, and cost savings. It is also driven
by engine age and ownership.

“This OEM fulcrum in the aftermarket

has resulted in us not permitting the use of
PMA and DER. Re-leasing to 50% of the
market is not where we want to be. That is
why we cannot accept it. We are not in a
position to know where that engine will be
in five or seven years. Neither do we know
which MRO will perform the SVs. The
OEMs are, and probably always will be, in
an incredibly strong position where they
can dictate. They have effectively flushed
PMA and DER out of the gas path area of
engines,” says Hough.
“The only stage of an engine’s life
where I might be less apprehensive is
during its last rebuild before teardown. At
this point, I am not worried about the
engine going through an SV because, if it is
unserviceable, it will have to be sold for
is it really changing the fundamentals in about 50% of the MRO aftermarket, so parts. This does not remove my concern
relation to the acceptance of PMA and there is a 50% probability that, when a completely, however, because you have to
DER on engines and specifically the gas lessor takes an engine back from airline A take into account CFMI’s and GE’s stance
part of engines? Not at all,” says Richard and re-leases it to airline B, the new lessee on influencing parts. If I want to sell a set
Hough, executive vice president head of will have an existing maintenance contract of low pressure (LP) turbine discs on the
technical at ELF. “Within the leasing with an OEM,” continues Hough. “When market, either to CFMI or otherwise, I
community, ELF’s view is aligned with the the engine subsequently goes through an need to be aware of the level of influencing
engine lessors, both independent and OEM SV, the OEM will advise that it will not parts that have been incorporated into
controlled, and the aircraft lessors. This reinstall the PMA and DER parts on the those discs. And this is because at least
agreement does not change a lessor’s grounds they are not OEM-compliant, and 50% of the aftermarket is controlled by
perspective, particularly on young and classified as influencing parts. The lessee CFMI and the OEMs. The biggest parts
mid-life aircraft. will also be liable for additional costs to players in the market are all OEM entities.
“The fact that I do not accept the use pay for OEM replacement parts So I cannot sell that engine for teardown
of PMA and DER is not a matter of irrespective of the serviceability or and then sell 100% of the parts to the
principle, but simply down to economics. repairability of the PMA and DER parts. market,” says Hough.
Yes, they are a cheaper alternative to the There may also be an impact on life limited “CFMI policy on PMA and DER has
OEM product, but from our perspective, parts (LLPs) which are considered to be not changed. That is an overriding theme.
the overriding economic imperative is our ‘influenced’ by the fact that they have been What they have done is clarify specific
ability to re-lease,” continues Hough. operated in an engine containing PMA and areas that, in the market, were perceived to
Hough explains that ELF takes a long- DER parts, adding more financial burden. be nebulous. Probably the most significant
term view on engines and highlights a case The lessee will invariably seek thing to emerge from this agreement is that
in point. reimbursement from the lessor, who will it forms a baseline for what is an
“An engine has a useful life of 20 years, then have to make the commercial decision acceptable practice by any OEM. And to
maybe longer,” adds Hough. “Technically of whether to contribute with no reciprocal that extent, CFMI has set the tone in a
speaking, you can keep rebuilding an benefit to itself, or choose not to contribute place where its finds it acceptable,”
engine until you build more aircraft to fly it and thereby negatively impact the summarises Hough.
on. It can be stripped down to piece part relationship with the customer,” explains
level and rebuilt again. If we buy an engine Hough.
and lease it to airline A for five, seven or 10 “In all likelihood, the customer is going The future
years and permit it to use a normal level of to identify this issue before they take the While it may be too early to appreciate
PMA and DER, when we take that engine engine on lease. They will invariably agree if the IATA/CFM agreement will have any
back we will be unable to re-lease it to at to the lease but on condition that, when it far-reaching consequences, it is certain that
least 50% of the market without paying needs an overhaul, either the lessor pays opinions will continue to be divided.
money that we would not otherwise have for the incremental cost, or takes care of Whether this approach of transparency and
had to pay. You are reducing your managing the SV under its own contract, accountability will be adopted by other
marketability and putting a question mark in which case the lessee will also request a industry leaders remains to be seen.
over the residual value of the asset. This rent holiday for the duration of the SV.
uncertainty is avoided if you only permit Either way, it costs the lessor money and To download 100s of articles
the use of OEM parts.” transfers the risk that normally resides with like this, visit:
“For example, the OEMs control the lessee to the lessor,” adds Hough. www.aircraft-commerce.com

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 43 I MAINTENANCE & ENGINEERING

Where should an MRO focus its effort to extract productivity and efficiency
gains from its business? What are some of the technological and
commercial strategies being employed to improve maintenance
mechanics’ labour productivity and efficiency?

Systems to maximise
labour efficiency and
reduce cost per man-hour
T
he expression ‘touching tin’ accomplished in 1MH equates to 100% systems and the completion of paper
means the overriding objective of efficiency. Conversely, if that same task records, a redundancy which throws up
ensuring that mechanics uses 2MH, efficiency falls to 50%. efficiency and quality assurance problems.
maximise their time working on Jeff Cass, vice president strategy & Cass emphasises that a prime focus for
the aircraft, free from irregular chief technology officer, aerospace & IFS is the co-ordination of dependent
interruptions. This is achieved by defense at IFS, explains that: “Efficiency people, or specialised players, intrinsic to
eliminating idle and non-productive hours has to do with how quickly an individual the maintenance process, by quickly
induced by unnecessary travel time and can perform an activity. We believe that sharing information that contributes to
waiting for services. This helps realise making the individual more efficient in that making the individual more efficient. This
production targets efficiently, thereby chain, by either having them reduce time or can be described as a connected workforce.
optimising existing capacity, and executing becoming more effective at the job they are Connecting people real-time on the same
maintenance effectively. Disruption doing, is critical to not just their individual information, via a single platform, is
intrinsically affects productivity. performance, but also to the collective paramount for improving the productivity
This is not achieved via a single performance of the maintenance of an organisation.
solution, but via the aggregation of pivotal organisation with returning aircraft to “A mechanic at the gate who is dealing
small improvements. This will realise the service. with an aircraft-on-ground (AOG)
maximum possible savings for a “Productivity relates to the end goal of situation invariably reaches out to
mechanic’s time, which leads to sizeable getting aircraft assets back up and in use,” maintenance control, which in turn reaches
gains in labour efficiency. continues Cass. “It is about how we take out to engineering, whether they be
Productivity and efficiency, otherwise processes and collapse timeframes, while structural or propulsion specialists. A
put as quantity and quality, are two obviously maintaining financial control of communication chain of expertise is
integral goals at the very core of any the cost of executing those activities. This established, which focuses on helping that
maintenance repair and overhaul (MRO) is whether those involve turning wrenches mechanic on the pivotal end of
provider. to fix the aircraft, planning functions, troubleshooting. We believe digital
Productivity is the ratio of productive supply chain provisioning, and so on.” information passed through that chain can
to unproductive hours, and while what is really help accelerate getting information
classified under each heading is subjective, from the point of maintenance back
this essentially indicates the man-hours Connected workforce through expertise and then back to that
(MH) an organisation can sell and the “When we looked at the penetration of point of maintenance, replacing walkie-
customer will pay for. While shift patterns digitisation in the aviation industry, talkies and phone calls,” expands Cass.
will differ, and influence this indicator, maintenance is one of the sectors that Purpose-built user interfaces for each of
typical deductions of time include holidays, makes the least use of digital tools and the assets involved in the process chain,
training and sick days. Variations by digitisation in general. This is partly whether they are desktop power users or
regions, such as the Middle East, may because you physically need someone to those relying on mobility and simple-to-use
consider correlative factors like prayer time perform aircraft maintenance,” says Joost interfaces, serve to assist in an easily
and additional break periods for mechanics Groenenboom, principal at ICF. consumable fashion, rather than task the
to recover from working in a hot Digitisation stands to reap major user with data entry. Expanding this scope
environment on the line. Working culture percentage gains around the productivity of connectivity brings with it the challenges
and ethics will also play a role. of a process by fine-tuning timeframes to of ensuring that users are not impeded by
Efficiency serves as an index of how ameliorate the flow of an activity from IT outages.
long it takes to complete a task versus the end-to-end. This is in part due to the “At IFS, we absolutely believe that the
allocated time, and gauges whether there is continued application of antiquated main person to focus on is the end
any waste in the process. A task practices in aircraft maintenance. Still mechanic, and that is what our customers
provisioned to take 1MH and prevalent are the use of both electronic are telling us as well,” says Cass. “We can

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44 I MAINTENANCE & ENGINEERING
Critical path management allows complete
visibility of the progress of an airframe check,
and so ensures that target turnaround times are
achieved.

how many fewer MH did I spend, and

what was the cause? Good data is the
biggest challenge to measuring what you
are doing and then how to improve. Only
then can you become better.”
Groenenboom underscores that when
ICF goes into airlines, the issues typically
encountered centre around components
and manpower; essentially these two
elements not being in the right place at the
right time. One of the significant things
that can be improved is the material
process. On the one hand, you do not want
to hold an extensive amount of inventory,
but on the other, you do not want to be
waiting 12-16 hours for a part when your
have a lot of impact on the individual and scheduling all tasks required to complete a check downtime is only 24 hours. It just
their efficiency within this productivity project, the duration of each task, delays the whole process.
chain. Today you can easily take an interdependencies identified by “Most of the supply chain is still being
extremely complex SAP form and put it on predecessors and successors, and sets macro-level forecasted to provision for
a mobile device and present it to a logical end points such as milestones and heavy maintenance visits and is not
mechanic. That is an overwhelming piece deliverables. necessarily being done by individual
of technology,” says Cass. “The critical path is your shortest parts,” says Cass.
Change management and acceptance, turnaround time (TAT). The top “Supply chain is totally critical. The
for example, of electronic time capture are companies anticipate most defects and key is not to overstock,” says Kazmierczak.
complex and sensitive issues to address and build them into the plan. If they find a “Otherwise, you will accumulate stock
implement. For a unionised workforce, defect, they expect to have it fixed within a that ultimately needs to be depreciated.
there is a need to change the mindset of pre-specified period of time, and will have The general rule is that anything not used
fear that management are measuring an the parts, tooling and labour ready in case in two years is probably never going to be
individual’s performance, to single out that they find it. For new defects, you need very used again. Modern MROs might typically
unproductive element, which might in turn fast engineering response, and fast logistics hold 70% to cover for whatever might be
lead to risk of unemployment. response,” says Ray Kazmierczak, director needed, but have to move very fast to get
“Labour efficiency has got to be at the at RFK Consulting. the other 30%. Boeing and Airbus now
collective level, not at the individual level,” Critical pathflow enables monitoring have hubs located in the Asia Pacific region
adds Cass. and comprehensive visibility throughout and Europe, so not all parts are being
the lifecycle of the project, which owing to shipped out of the US or France.”
the inherent nature of aircraft In terms of tooling, Kazmierczak
Production control maintenance, can change from one day to advocates ‘point of use’, positioned as close
Dynamic check planning and the next. Subsequently, any deviation from as possible to the mechanic. This could be
management, with analysis at a granular the flow can be quantified and reacted to in a board containing landing-gear tooling
level, are fundamental to successful real time to effect realignment. adjacent to the landing-gear team, a
maintenance execution. After event deviation analysis, the separate set of tooling alongside the engine
“The entire planning and performance process of comparison between planned team, and another set in the interior of the
process is something that needs to be and actual events harvests pivotal aircraft for the cabin team. This approach
clearly defined, and many airlines lack this knowledge to be implemented in planning keeps the mechanic in the place of work.
ability. Setting very clear guidelines and future flows to avoid similar deviations. “Production control templates are
boundaries as to how you create and Increased visibility leads to increased effectively what IFS believes to be the best
perform work packs is one of the first key accountability. practice for flowing a production visit, for
things you need to do. Once you have that, “Perform inspections fast. If you have an aircraft at a point in its life cycle,”
there needs to be interaction between critical inspections with critical paths, you explains Cass. “That flow is made up of a
planning and production control as to how want to do the bulk of the inspections in number of placeholders for non-routines.
you achieve your daily targets and the first portion of your check, which Those placeholders are not just big project
milestones. Process discipline is very typically sits around 25% of check time,” buckets, but are buffers that sit around
important. If you have that set, then the says Groenenboom. “If you do not have each of the individual phases and
performance itself becomes somewhat real-time MH expenditure and task card milestones within a project plan. Typically,
more routine,” explains Groenenboom. closure, it is difficult to be accurate in most of the buffers are time periods later in
Critical path management and analysis, planning. It is important to measure those the project that become really critical for
provided by maintenance and engineering MH, and to see how the check compared maintaining the out date for the visit’s turn
(M&E) systems, engages algorithms for to historical checks. How much extra time, time.

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“Overall, we are using the actual required, which milestone it is to be Most of our non-routines are therefore
findings from past checks to refine the sizes worked under, its predecessors and fairly routine,” explains Bathurst.
of those non-routine buffers. The buffers successors, the start and completion dates, Analytics also play a salient role in
built into the production control templates, and estimated MH. refining estimated MH required to
by return on experience, are replaced by “Every project we do, each job is complete a task, which ensures EAMS stay
specific unscheduled corrective actions,” within a milestone and there is a flow. We as realistic as they can with everything they
continues Cass. “Some of our customers know on a daily basis if we are on or off do.
are experienced enough that they are schedule,” says Bathurst. “If a job is estimated to take 10MH
positioning the corrective actions in the Leveraging shop floor data collection and our mechanics routinely achieve it in
production templates long before the (SFDC) provides a benchmark against 8MH, we adjust that estimate down
aircraft visit has started. KLM is one of the previous checks and performance, and accordingly. We are also willing to increase
most advanced clients from that point of opens up powerful learning opportunities MH for a task, but the mechanics have to
view, typically positioning several hundred which can be applied to fine tune future compensate by reducing MH for another
corrective actions it anticipates it will be checks. task, so that overall we are still on the
executing through a 737 or A330 heavy EAMS, drawing on the experience of same page,” says Bathurst.
maintenance visit.” critical path analysis from historical light He says that they advocate a project
“Speed drives efficiency. Keep putting checks, has been able to pinpoint the areas buffer over an individual task buffer which
work in front of the mechanic aided by that need to be inspected first. This is accounts for an extra 20%. The buffer is
good materials, good documentation and demonstrated during a C4 inspection on an standalone and put at the end of the
good engineering support,” says Embraer E-Jet, where they are aware there project. It is monitored for impact and
Kazmierczak. is a high probability of finding corrosion in managed throughout the life cycle.
a distinct location. This is a direct result of “We do every job based on what we
following through from a past check and think we can do it in, and we have an
Productivity via analytics using history to update previously overall project buffer that compensates for
Phil Bathurst, managing director at established templates for routine tasks. that potential extra 20%. So, our target is
Embraer Aircraft Maintenance Services, “We will adjust our routine tasks to a minimum of 20% off what the contract
Inc (EAMS), located in Nashville, ensure that areas that could potentially lie schedule is. As a result of doing this, our
Tennessee, highlights the importance of in the critical path are inspected first. We team has begun to feel that an aircraft that
maintaining a flow when developing a can then determine whether or not they are delivers on time is perceived to be off
critical path by including routine work, as in fact in the critical path and compress schedule,” says Bathurst.
well as non-routine, as it is generated. On that critical path span by getting started The ability to realign to the critical
adding the non-routine to the workflow, its earlier. It is all about using analytics to plan path when deviation occurs is driven by
EmpowerMX FleetCycle® for MRO as far in advance as possible. The bottom visibility and understanding workflow, the
software establishes what skills are line is we try to eliminate the unknowns. constituents of which are flowing each task

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48 I MAINTENANCE & ENGINEERING
Preventing disruption of work improves
productivity, keeps the individual mechanic at
their place of work, and drives efficiency.

all parts for routine tasks. Additionally,

using analytics, they have the ability to
assess parts usages based on previous
checks. If history shows there is a 50%
probability that a part requires replacing
when inspected, EAMS will perform a pre-
draw. This means that it is available
instantly if it is required, rather than
having to be ordered.
“Supply chain is key, but even more
important is supply-chain planning. You
should have a plan in place for what you
are going to use,” continues Bathurst.
“Our supply chain evaluates the usages
from previous checks, in collaboration
with our operations team. We look at lead
within a milestone, having daily expected to take, and also his duty to times and if something typically takes five
deliverables, and knowing the available report to the project lead, halfway into that days, we are more likely to order that in
manpower. task, should he encounter a problem and advance than something that would have a
“The software will show you that require longer than the allotted time. The one-day lead. It is all logic, a whole set of
certain skills are technically behind on their target of halfway into the estimate is used analytics to determine what we do and do
check milestones, and how many MH are so that the mechanic can either receive not order in advance. This is based on A,
needed to catch up,” explains Bathurst. advice, or get additional support. how quickly we can get it; and B, how
“We see that in advance and will assign Visibility promotes healthy competition often it fails during a specific type of check.
manpower to the path. We will do the between maintenance bays and encourages Another advantage of having everything
same thing the other way around. Most of the exchange of information to achieve based on milestones is, instead of
our customers want their aircraft back as leaner processes. TV screens in each bay, requisitioning every part AOG, it is
soon as possible. If they have a 20-day fed by the company’s M&E system, display ordered based on the timeframe it is
check and we can get the aircraft back in live key performance indicators (KPIs) for needed for when that job starts.”
16 days, they are fully backing that safety, quality, budget and delivery with Adhering to the underlying efficiency
outcome. Conversely, we have other attributes such as injuries, quality escapes, ethos, supply chain clerks deliver parts to
customers that do not need the aircraft warranty repairs and a live version of the the aircraft, to keep the mechanics at their
back in less than 20 days because the yield workflow and current check status. place of work. Tooling is also delivered,
time is where it needs to be. In which case, “Three of the maintenance bays might and again as everything is based on
we will do the opposite. If we are well each be performing a B6 inspection with milestones, timeframes for use are known
ahead of schedule, we will pull manpower landing-gear replacement, either for the in advance.
off that aircraft by the skills that are ahead same or a different customer. They will all “Our principal factors are safety and
to have it delivered in 20 days.” have the same flows. One line might be quality. We preach that both safety and
Bathurst adds that in terms of long- delivering the aircraft in 20 days, the other quality are not variables. You have to be
range manpower planning, by using the in 18,” says Bathurst. “There will be an safe and you have to produce work of the
software and analytics gained from their exchange of information to determine utmost quality, but we also expect you to
short-term plans, they can forecast the what is being done differently to achieve work as efficiently as possible,” says
number of mechanics needed on each shift delivery in 18 days. As the original Bathurst.
by skill to flow the aircraft. This allows at equipment manufacturer (OEM), our focus
least a six-month lead time to visualise the is on improving the product and keeping
resources required and either cross-train, maintenance costs down for the airlines. If Work execution
cross-utilise, or bring in additional skills a customer has requested a work package Working in extremes of temperature is
rather than react to the situation when the to perform a B3 inspection and embody a one of the influencing factors that affect
aircraft is in the hangar. service bulletin (SB), we can advise them efficiency and productivity.
Analytics are used to derive the number that it would be more efficient and cost- To execute a wheel change on the line
of MH it takes the average mechanic to effective to perform the SB during a B4 in the Middle East, with exposure to
complete a specific task. This is by inspection, when access to relevant area summer highs of 50 degrees C, will
weighing up that a new mechanic might has already been gained. There is no inevitably have an impact on the human
consume X plus 20% MH, and an commercial and financial sense for us to body, and necessitate more periods of rest
experienced one can achieve the same job perform low value-added work. As an and recovery. Freezing lows of -35C in
in X minus 20% MH. Bathurst explains MRO, we focus on turnaround times. It is Northern Canada and Alaska will likewise
that it is the mechanic’s responsibility to all about throughput.” limit a mechanic’s abilities.
understand how many MH the task is Before every check, EAMS provisions Cultural and ethical variations might

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50 I MAINTENANCE & ENGINEERING
To fill empty hangar slots in a low season, MROs
may choose to be more competitive with pricing
to attract customers. Offering lower pricing is
aided by improved labour efficiency.

could justify positioning the aircraft

outside its network to Asia or the Middle
East.
“There are also variations in
downtime. If a D check for a widebody
takes 25 days in one location and 30 days
in another, then those five days are five
days of additional flying. For certain
airlines that is quite important,” explains
Groenenboom.
Cass foresees that the demand in the
marketplace to build facilities and increase
capacity to execute base maintenance, will
continue to grow aggressively in the
appropriate labour cost market.
“In general, obviously the move is
towards lower-cost labour countries. There
are several major MRO organisations that
have formed alliances with local MROs
identify one region as synonymous with redeploying mechanics from heavy checks and then applied their own philosophies,
accountability, punctuality and quality, to line maintenance. This would serve to principles and processes. The output is
where higher labour costs stipulate higher address both the increased aircraft activity good. For example, Lufthansa Technik
efficiency. Another region might see higher in peak season and to cover for any Philippines is a joint venture of Lufthansa
staffing levels due to lower labour costs, manpower shortages due to annual leave. Technik AG and Philippine aviation service
where individualism is less part of the Flexible working arrangements could provider MacroAsia Corporation. In
culture, and bureaucracy demands greater also see staff sent on training, and any Europe, there are also a few subsidiaries in
management attention to resolve problems. overtime worked in winter months Malta and Ireland, and those are good
“If you do not match your capacity to ‘banked’, rather than paid, and taken off as strategies. HAECO, which has facilities in
the workload, it drives inefficiency because time in lieu in summer months. Hong Kong and Xiamen, also has HAECO
people naturally do not want to just sit “To get work in the summer months, Americas with four locations across the
around and do nothing. Companies that you need to approach the big carriers. United States. We see the same principle.
are losing a lot of money are wasting 40% They cannot perform all their maintenance They try and capture particular markets.
of the MH available to them from their in the winter. The fleets are too big. There Certain aircraft types travel better than
workforce due to overstaffing. You see will be more planes on the ground in the others, and if you want to capture the
twice as many people for the work and winter, but they still have to put aircraft on North American narrowbody market, you
there is a tendency to stretch that work,” the ground in the summer. The smaller need to have a facility there. Nobody is
says Kazmierczak. carriers tend to fly and have very little on going to fly an A320 from Europe to Hong
Health and safety is a further element the ground in the summer,” advises Kong,” says Groenenboom.
to consider, with Europe imposing strict Kazmierczak. Kazmierczak explains that in the Asia-
rules. Groenenboom puts forward the MROs may choose to be more Pacific region, there are plenty of good
example that you cannot enter a fuel tank competitive with pricing in the low season independent colleges that provide the
without first venting it. The task requires a to entice airlines to fill empty hangar slots, foundations for a competent technician.
minimum of two people and both must rather than have mechanics standing idle. There can be investment by the airlines
wear full-face masks. In another region, A consideration is to focus on potential into the colleges with an agreement to
where the regulatory rules are different, the markets in regions that experience opposite induct the best students through the
same stringent requirements might not seasons: summer in the northern airline’s proprietary training programme.
apply, so it is easier to enter a fuel tank. hemisphere versus winter in the southern This in turn encourages the colleges to
There may be no lengthy venting hemisphere. maintain a high standard of training. The
procedures, and you might need only one From the airline’s perspective, they will Philippines, for example, follows the
person. Fuel tank entry in one region might evaluate total price when weighing up their Federal Aviation Administration (FAA)
require more MH than in the other region. options, factoring in downtime and system and students gain the equivalent of
While this might not affect labour positioning costs. A narrowbody aircraft an A&P licence.
efficiency, per se, it reduces the efficiency of requiring a C check, costing a few hundred “When you set up an MRO, a
performing the task. thousand dollars, will travel a shorter partnership with the local airline gives you
distance than a 747 widebody necessitating base load, political co-operation, and
a D check, valued at a few million dollars. airport collaboration,” says Kazmierczak.
MRO market strategy The delta on a few million dollars could be Cass expands on this disruption in the
To manage seasonal fluctuations in more for an MRO that is located further market caused by the lower cost of labour
workload, MROs could consider away than one that is closer. The airline and points to the fact that for some time

AIRCRAFT COMMERCE ISSUE NO. 124 • JUNE/JULY 2019

52 I MAINTENANCE & ENGINEERING
Inspections with critical paths need to be
performed in the first 25% of check downtime.
Planning checks this way allows non-routines to
be factored into the critical path, and so mitigate
disruption to check progress.

representative. These stand outside the

contract, but critically are to be performed
within the original downtime.
“It is all about selling the maximum
amount of work per day in terms of MH
without extending the ground time. The
best companies are selling more than they
produce. They are so efficient that the
market does not realise how efficient they
are. They are selling 20% more than they
actually clock with an efficiency of 90%,”
says Kazmierczak.”

Accounting for other costs

“Overall you need to include elements
there has been the notion that quality emphasis being placed on this sector, partly such as investment, depreciation, utilities,
matters and airlines and MROs like Air because they do not have the glamour of and insurance. There are massive hangars
France–KLM and Lufthansa have tried to being modern digital aircraft, such as the in the Middle East that are completely
make sure work is being done in Europe. 787 or A350. There are really big enclosed and air-conditioned, and this all
They are branding that work with a level opportunities for companies to focus on needs to be taken into consideration. So,
of quality that is the differentiator to justify older 737s or A320s. Those are the planes your efficiency, labour cost, and overheads
the price. Quality is both compliance, as that require heavy maintenance visits, the together with some form of annual loading
well as the measurement of follow-on labour-intensive C and D checks. There is will provide you with the fully burdened
issues once the aircraft has been returned ample opportunity for improvement labour cost,” explains Groenenboom.
to customer. because those aircraft are not equipped “The Middle East has a heavy reliance
“The tier of operator will influence with the latest diagnostic capabilities that on ex-pat labour due to local staff
project flow. The top-tier airlines with large have emerged to assist with maintenance. shortages. To attract the workforce, they
fleets come with fast OEM responses, and There is also not a lot of retro-fit work have to pay a premium on the wages,
parts support programmes. Maintenance being undertaken by the aftermarket or excellent remuneration packages, which is
workscopes are more predictable, they pay OEMs to help with those aircraft,” says typically double what would be expected
more, and are generally easier to work Cass. at home. Ultimately that becomes a burden
with. Lower-tier airlines with smaller fleets “Airline MROs in general have a big on the parent airline,” says Kazmierczak.
and minimal parts support, are bottom of base load from their parent airline. And
the queue when they go to the OEM. They very often you see that either the airline
are harder to work with and want to pay owns 100% of the MRO, they have some Summary
the minimum price. The higher up you go shares in it, or they used to own the MRO Where are the biggest opportunities for
in the value chain, the easier it gets,” says so there is some historical link. But maximising labour efficiency in aircraft
Kazmierczak. typically, that sort of a baseline allows maintenance?
“Customers want an end product. them a certain volume and allows them to Is it via digitisation; planning and
Ultimately, maintenance is an insurance for build the organisation in a way that makes production control; critical path
trouble-free operation. Certain airlines are some form of profit, or at least has a basis management and analysis; benchmarking
price shoppers, they focus less on quality. for profit. This in turn makes it easier to through analytics; deviation analysis; daily
Other airlines want a brand name. They sell competitive work to third-party milestones and production targets;
want to make sure that the aircraft is providers. The downside is that typically if electronic time capture; supply chain
maintained to the highest quality and will you have an airline MRO, the parent planning; process discipline and
send over large teams to perform airline is going to be a higher priority than accountability; and change management?
supervisory inspections,” says a third-party customer coming in with two All of these constituents have implications
Groenenboom. aircraft. If you are a third-party customer for productivity and efficiency, both at an
Narrowbody aircraft form more than coming in with 100 aircraft, they might individual and collective level.
half of the world fleet, so they inevitably think differently,” says Groenenboom. Understanding how these elements
produce a lot of maintenance, and account Kazmierczak advises that the best combine to create repeatable processes that
for one of the biggest portions of the MRO MROs try to maximise the revenue out of incorporate optimal plans from a return on
market. the contract by upselling. Instigated at experience is essential.
“There are still a lot of older aircraft in team leader level when the aircraft is in the
operation that have to go through hangar, they will tender for additional To download 100s of articles
maintenance. This poses an interesting workscopes, such as cabin refurbishment like this, visit:
problem, because there is not a lot of and exterior paint detailing, to the airline www.aircraft-commerce.com

AIRCRAFT COMMERCE ISSUE NO. 124 • JUNE/JULY 2019

 53 I FREIGHT BUSINESS

A passenger-to-freighter programme is required

T
he large number of 747-400
freighters in service, their age and for the 777-300ER to provide a replacement for
their cash operating costs mean
that an alternative aircraft will be
747-400 freighters. IAI has made a three-year
needed within five years. The only aircraft study into such a project.
that can possibly fill this role is the 777-
300ER. Only the 777-200 series is built as
a factory freighter, so a passenger-to-
freighter conversion programme will be
required for the longer 777-300ER.

777-300ER characteristics
IAI considers
The 777-300ER has several features in
its favour. The first features to consider are
the probable gross structural payload and
the available volume that a converted
777-300ER P-to-F
aircraft would offer.
Provided this was similar or close to
the 747-400, the 777-300ER’s likely cash
operating costs, financing or lease rates,
programme
operating performance, number available
would then also have to be considered.
The 777-300ER entered service in aircraft. The OEW of the converted the feedstock passenger aircraft, cost of
2003, and to date more than 800 have aircraft is a particular concern for the 777- conversion, and cost of any maintenance
been delivered to airlines in passenger 300ER. The passenger variants of the 777 required,” says Matalon. “The cost of the
configuration. A further 33 are on order. were built with carbon fibre reinforced 777-300ER is estimated at $30 million,
The 777-300ER is operated in large fleets plastic (CFRP) floorbeams to save weight. and to make conversion feasible, the
by many of the world’s major While these floorbeams will contribute to a combined cost of a feedstock aircraft and
intercontinental carriers, so there will be no relatively low OEW, they will also place modification needs to be about $60
issues over quantities or limitations in limits on the running loads and therefore million. Additional costs cannot be much
appropriate feedstock. Aircraft production payload permitted in the main-deck floor. higher, since the total cost has to be
had increased to 46 units by 2008. This could be alleviated by replacing the reasonable in relation to a likely market
The issue of payload capacity concerns CFRP floorbeams with aluminium beams, lease rate that is no higher than $700,000-
provision of an aircraft that is close to the but it is thought this would excessively 750,000 per month. The implications of
747-400F, and larger than the 777-200F. increase the cost of conversion. Leaving the this are that little additional maintenance
The 777-200F has a gross structural CFRP floorbeams unchanged would result must be required on the aircraft. This
payload of 228,700lbs and total in a net reduction in OEW of about means that no large airframe checks or
containerised volume of 22,371 cubic feet 27,000lbs, which would be achieved by engine shop visits and life-limited parts
(cu.ft). The 777-400BCF, the converted removing the passenger interior. The OEW replacement would be required. The
freighter, has a gross payload of would be reduced to about 343,000lbs, feedstock cost of $30 million would
254,825lbs and containerised volume of and the aircraft would therefore have an therefore be for an aircraft in a relatively
27,012 cu ft. overall increase in gross structural payload high maintenance status, especially with
Once converted to freighter, the 777- of 72,000lbs up to about 226,000lbs. This respect to its engines.
300ER is likely to fall between these two, would be about 2,700lbs less than the 777- “The option of selling a used passenger
and would preferably be closer to the 747- 200F. The 777-300ER freighter would aircraft, returned from lease and in a good
400BCF. The main issue affecting the 777- nevertheless have a containerised volume maintenance condition at this level has to
300ER’s gross structural payload is the of 28,139 cu ft, 5,768 cu ft more than the be considered in relation to the cost of $15-
maximum zero fuel weight (MZFW) and 777-200F. 25 million to reconfigure the aircraft’s
operating empty weight (OEW) following When compared with the 747-400BCF, interior for a new lessee,” continues
conversion. Rafi Matalon, aviation group the 777-300ER freighter’s gross payload Matalon. “There is also the issue that it
marketing director at IAI says that it is would be 28,285lbs less, while the 777- takes 18-24 months to do the engineering
heading towards launching the 300ER’s volume would actually be 1,127 for such a reconfiguration.”
programme, and needs a launch customer. cu ft more than the 747-400BCF’s. The oldest aircraft are now 15 years
“It takes about three years to develop the The overall implications are that the old, so the first aircraft could come
supplemental type certificate (STC) for a 777-300ER freighter would have a available at the right market value within
conversion, and we have made some maximum packing density of about the next three years. Analysis of the fleet
studies. We perform our own reverse 7.56lbs per cu ft, about 1.30lbs per cu ft shows that aircraft built from 2003 to
engineering to develop the STC. We have lower than the 747-400BCF’s because of 2006 have operated at 5.0-11.0 flight
also made an agreement with Boeing to be the difference in gross structural payload hours per flight cycle (FC). The highest
licensed so that passenger aircraft between the two types. number of accumulated FCs is about
converted by us continue to get technical Other considerations are the cost of 12,500, while most aircraft accumulate
support from Boeing for the entire conversion and overall cost of build and fewer than 10,000FC. Matalon says that
aircraft.” making an aircraft available for service. Bedek Aviation is hopeful of a launch later
The MZFW for the 777-300ER is “You have to remember that the list price in 2019.
expected to increase from its current level of a 777-200F is $150-160 million. The
of 524,000lbs by 45,000lbs to 569,000lbs. converted 777-300ER will provide about To download 100s of articles
Bedek has a track record of getting good 25% more containerised volume, and its like this, visit:
increases in MZFW when converting acquisition cost will depend on the cost of www.aircraft-commerce.com

ISSUE NO. 124 • JUNE/JULY 2019 AIRCRAFT COMMERCE

54 I FREIGHT BUSINESS

Market demand for smaller widebody freighters is strong, and is the

fastest growth sector of all cargo aircraft. The 767-300ER is the popular
airliner for passenger-to-freighter conversions. This is likely to change
when A330-300 market values have declined to sufficiently low levels.

Picking 767-300ERs &

A330s for freight conversion
T
he number of annual 767-300ER converted two A330-200 and two A330- buyers will have to look past a 1998
passenger to freighter (P-to-F) 300 aircraft. They have a gross payload of aircraft. This costs $10-11 million more
conversions has increased by 132,300-134,500lbs/59-60 tons (see table, than a 767, and you cannot justify that
42% over the past three years. page 56) that makes EFW’s converted premium.”
Urgent acquisition of retiring 767-300ER A330-200s and -300s viable alternatives to It is forecast that A330 -300 feedstock
passenger fleets by lessors and freight converted 767-300ERs. values could be at the correct price-point
carriers for P-to-F conversions further for conversion in the next three years.
highlights the high growth rates in its size
sector. It is predicted that up to 1,300 Conversion economics
freighters in the 767-300ER’s size bracket For an aircraft to be suitable for IAI
will be needed over the next 20 years to conversion, its age, accummulated flight Bedek introduced the supplemental
meet demand. The better passenger- hours (FH) and flight cycles (FC), and type certificate (STC) for the 767-300ER P-
configured aircraft as potential candidates maintenance condition must align with a to-F in 2009. From 2009 to 2018, Bedek
for freighter conversion are examined here. low enough market value. converted 63 aircraft (see table, page 56),
The medium-size freighter fleet of Total cost of preparing a freighter for equal to 65% of the total number of 767-
aircraft with a 30-80 ton gross payload has service will include the two largest elements 300ERs converted.
been increasing by 35-62 aircraft per year of acquisition cost of the feedstock aircraft Conversion costs are $13-15 million;
over the past three years (see table, page and the cost of conversion. There will also list prices will depend on the quantity of
56) for two reasons: to replace older be some maintenance to perform. aircraft converted. Converting a 767-
aircraft with poor performance; and to It is important to maintain a balance 300ER costing $12 million, with a
meet increasing demand for air cargo by e- between an aircraft’s low purchase price reasonable maintenance status, adds up to
commerce. and it remaining useful service life. There a total on-ramp cost of $27-28 million,
New fuel-efficient A350s and 787s are are fewer passenger-configured 767- with some more for maintenance.
quickly replacing older aircraft such as the 300ERs to choose from for conversion. BDSF is the suffix for aircraft modified
A330 and the 767 in mainline passenger “We will run into a situation where the with a Bedek P-to-F conversion. According
fleets. Market values of used types fall once 767 will be old, and there will be plenty of to IAI’s aviation group marketing vice
airlines have retired a large block of A330s fresh from passenger fleets available president, Rafi Matalon: “IAI has seven
aircraft, and this is to a level that makes for conversion,” says Stephen Fortune, 767 conversion lines in Israel, and one line
them ideal to be converted to a freighter. principal at Fortune Aviation Services. in our site in Mexico. This makes us very
The 737-300ER makes an excellent According to Fortune, values for a late efficient in freighter conversions. Medium
medium-size freighter for the express 1990s 767 with engines that have three or and small operators have found that this
freight market, because of its affordability, four years life remaining cost about $12 market is good for them, although leasing
payload characteristics and suitability for million. “It is hard to see that number companies are IAI’s biggest customers at
domestic and international flight getting much lower, partly because most of the moment.”
operations. the value is in the engines.” The 767-300BDSF is available with or
P-to-F conversions for the 767-300ER Therefore, a freighter conversion without winglets. Both these aircraft have a
are offered by Boeing and Bedek, a division makes sense when the value of the airframe maximum MTOW of 412,000lbs and a
of Israel Aerospace Industries (IAI). Boeing gets close to part-out value. A part-out will maximum zero fuel weight (MZFW) of
sells a new factory-built option, the 767- depend on how much time is left on the 309,000lbs. The net structural payload of
300F, at a list price of $220.3 million. This engines. A pair of engines with a good half- an aircraft without winglets is
aircraft is based on the 767-300 series, and life will be worth about $9 million. . 114,560lbs/51 metric tons (see table, page
has a gross payload of 127,868lbs/57 tons. “Feedstock prices for A330-300s now 56). Aircraft without winglets are either
The 767-300F is popular with tier-one are a little high,” says Fortune. “They are passenger aircraft that did not originally
integrators, UPS and Fedex. Few other still well in the $20-30 million bracket. For have winglets or aircraft with winglets that
airlines have acquired it. a conversion to make sense the price needs had them removed during conversion.
Until recently there has not been an to be below this. Owing to the poor The additional weight of the winglets
A330 P-to-F conversion programme. In performance of early A330-300s with low means that the operating empty weight
2018 Elbe Flugzeugwerke (EFW) maximum take-off weights (MTOW), (OEW) between the two types is different.

AIRCRAFT COMMERCE ISSUE NO. 124 • JUNE/JULY 2019

 55 I FREIGHT BUSINESS
A BDSF 767-300ER conversion with Bedek is developing an STC for the - freighters operate.”
winglets has an OEW of 183,800lbs, while 300ER that implements a 9G net instead of Demand for the BCF remains strong.
one without them has an OEW of a ridged barrier. Replacing the ridged “There are about 330 767-300ER
180,800. The heavier OEW lowers the barrier with a net will, however, also feedstock candidates that are ideal for
gross structural payload from 128,200lbs sacrifice a main-deck pallet position. conversion,” says Pratt. “Boeing forecasts
to 125,200lbs (see table, page 56). The 767-300BDSF has a maximum demand for more than 500 widebody
Expressing his own opinion, senior packing density of 6.9lbs/cu.ft or freighter conversions in the next 20 years.”
consultant at Cargo Facts, Jacob Netz says: 7.1lbs/cu.ft, depending on winglet option The 767-300BCF without winglets,
“Winglets can result in a 5% fuel saving (see table, page 56). and operating at total tare weight of
for a long flight. The benefit of winglets is Bedek does a lot of the work for the 17,640lbs, has a net structural payload of
seen during cruise, not during take-off or engines at IAI’s engine shop. “With one 109,840lbs (see table, page 56).
descent.” agreement we can manage the entire The 767-300BCF has a maximum
Flying a two-hour sector gives a short conversion from start to finish,” says packing density of 7.0lbs/cu.ft. The
net time in which the winglets are Matalon. “The customer will only know winglet-equipped 767-300WBCF has a
beneficial, so the additional weight penalty IAI as the point of contact. We take full maximum packing density of 6.8lbs/cu.ft
of the winglets negates any fuel saving. responsibility for maintenance and the depending on winglet option (see table,
Typically, the 767-300ER will use 24 conversion. Since we do all the page 56).
(88-inch X 125-inch) main-deck pallet maintenance work during the conversion, Because the BCF is an original
positions or unit load devices (ULDs) and this saves time and cost.” equipment manufacturer (OEM) solution,
30 lower-deck (LD-2) positions. This gives IAI has an agreement with Boeing that BCF customers have full access to Boeing
the aircraft a total usable volume of 15,364 aircraft converted to freighter by IAI will customer support and integrated technical
cubic feet (cu ft). (see table, page 56). receive full technical support for the entire manuals to simplify maintenance and
The aircraft is installed with a manual aircraft from Boeing. engineering (M&E).
cargo loading system (CLS). “Adding extra The catalogue list price for a 767-
weight to a freighter is always an issue,” 300BCF conversion is $15 million.
says Matalon. “A heavy CLS means the 767-300BCF “However, customer options and the
aircraft can carry less net payload. We Boeing has completed a total of 33 number of conversions can affect the
install one CLS on the upper deck and save 767-300BCF conversions since the type’s price,” says Pratt. “It is estimated that on-
weight by not installing one in the belly.” launch in 2008. (see table, page 56). ramp costs can vary due to feedstock
Bedek can work with any CLS provider According to director of Boeing converted variability, such as what engine
of a customer’s choosing. “Commonality is freighters and complex modifications, maintenance is required.”
important, so it depends on the operator Alvey Pratt: “The Boeing Converted For customers with fleet-mixes, Boeing
and which system they would like to use in Freighter (BCF) is ideally suited for the can provide a variety of avionics solutions
their fleet,” says Matalon. growing express-cargo markets, where that can be integrated into the BCF to meet
To reduce the aircraft’s weight further, about 80% of in-service medium widebody operating requirements.

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56 I FREIGHT BUSINESS
767-300ER & A330-200/-300 FREIGHTER SPECIFICATIONS the aim of operating it for more than 15
years, the -300 makes more sense. The
767-300BDSF 767-300BDSF 767-300BCF 767-300BCF A330 A300 -300’s greater volume is a huge advantage.
winglets winglets -200P2F -300P2F Also the difference in price between
MAX WV MAX WV airframes will be a small percentage of the
operation and conversion cost.”
MTOW-lbs 412,000 412,000 412,000 412,000 513,677 513,677
Egyptair is converting part of its ageing
MZFW-lbs 309,000 309,000 309,000 309,000 374,785 385,808
A330-200 passenger fleet. “It has a slightly
OEW-lbs 180,800 183,800 181,520 185,720 242,485 251,308
different operation to the integrators,” says
Schmid. “It generally flies higher packing
Gross 128,200 125,200 127,480 123,280 132,300 134,500
densities on longer flight sectors. This suits
payload-lbs
the A330-200 better.”
Gross 57 56 57 55 59 60
Feedstock-certified aircraft with the
payload-tons
maximum weight variant, permit the
A330-300P2F and the A330-200P2F to
Net structural 110,560 107,560 109,840 105,640 114,560 113,312
have a MTOW of 513,677lbs (see table,
payload - lbs
this page).

Net 49 48 49 47 51 51
payload-tons
A330-200F
Max packing 7.1 6.9 7.0 6.8 7.2 6.1
The A330-200 has an MZFW of
density-lbs/cu ft
374,785 and an OEW of 242,485lbs. This
Volumetric 101,621 101,621 101,621 101,621 104,104 113,312
gives the A330-200 a gross payload of
payload 6.5lbs/cu ft
132,300lbs/59 tons (see table, this page).
Volumetric 110,560 107,560 109,840 105,640 116,809 113,312
Loading the aircraft with 22 containers
payload 7.5lbs/cu ft
on the upper deck and 13 on the lower
deck adds a total tare weight of 17,740lbs.
Therefore the A330-200 has a net
structural payload of 114,560lbs.
767-300ER PASSENGER-TO-FREIGHTER CONVERSIONS 2011 TO 2018 Volumetric capacity for the upper and
lower cargo holds equals 16,016 cu.ft, this
Year 2011 2012 2013 2014 2015 2016 2017 2018 gives the aircraft a max packing density of
7.2lbs/cu.ft.
Boeing 767-300BCF 1 4 2 3 6 10 Typically, the express freight market
operates at a max packing density of
IAI 767-300BDSF 4 3 1 1 5 12 17 17 approximately 6.5lbs. At this packing
density the A330-200 can carry a
Total 4 3 2 5 7 15 23 27 104,104lbs of cargo (see table, this page).

A330-300P2F
Both the Boeing 757 and 767 share a The on-ramp cost for an EFW A330- The A330-300 has a MZFW of
common pilot type rating. Pilots flying for 300P2F is estimated at $42 million; this is 385,808lbs and an OEW of 251,308lbs,
operators that use both types will be able $24 million for a feedstock -300 and $18 this gives the A330-300 a gross payload of
to simply transition between aircraft. million for the conversion. Thanks to 242,485lbs/60 tons (see table, this page).
According to Boeing, all but seven of EFW’s close relationship with Airbus, the As the -300 series has a longer fuselage
the first 767-300ERs can be upgraded to P2F conversion is likened to an OEM than the -200, it is able to carry more
its highest MTOW of 412,000lbs and solution. containers. Carrying 26 containers on the
MZFW of 309,000lbs. Located in Dresden, EFW is the upper deck and 15 on the lower deck adds
The first seven aircraft have structural exclusive provider of A330-300 a total tare weight 21,188lbs to the
differences that prevent them from conversions to DHL. The US-founded aircraft. This means the aircraft has a net
reaching these figures. These can be German company currently has contracts structural payload of 113,312lbs.
identified by their block numbers: VL001- for four conversion slots with EFW, and Combining an upper-deck volume of
VL006 and VL011. the option to increase the number to 10. 14,220 cu.ft and a lower-deck volume of
The 767-300ER’s landing gear may EFW has converted three A330-300s 4,800 cu.ft gives the -300 a volumetric
require modification before the HGW limit for DHL and three A330-200s for capacity of 18,581 cu.ft (see table, this
can be approved. Egyptair. page). This permits the aircraft a
It is forecasted that an A330-300P2F 6.1lbs/cu.ft maximum packing density, at
will have a useful service life greater than which the A330-300P2F bulks out at its
EFW 25 years, because of the strength of the net structural payload of 113,312lbs; this
EFW offers A330-200 and A330-300 market and the aircraft’s age and next is 11,691lbs greater than a 767 at the same
conversion programmes. P2F is the generation performance. packing density.
nomenclature for EFW’s A330 P-to-F The A330-300 has more volumetric Maintenance-planning for existing
aircraft. capacity than an A330-200. This means aircraft owners that want to convert its
Before the launch of EFW’s P2F series, the A330-300 is more suited to express ageing fleet is simplified. “This makes the
the only other cargo derivative of the A330 freight operations, that is volume based. process so much easier than buying a used
was the factory-built A330-200F. According to EFW vice president, sales aircraft with an unknown maintenance
Manufactured by Airbus and launched in and marketing for Airbus freighter history,” says Schmid. “Sometimes when
2010, a new A330-200F had a list price of conversion, Wolfgang Schmid, “If you are you open up an aircraft there will be
$241.7 million. There are 38 in service. buying an aircraft for this category with unexpected issues that require attention.”

AIRCRAFT COMMERCE ISSUE NO. 124 • JUNE/JULY 2019

 57 I FREIGHT BUSINESS
A standard feature on both the important option when converting an structural work,” says Schmid. “We can do
-200P2F and -300P2F is a powered Ancra A330-300, because it is a really big aircraft all the work, but the workscope in the
CLS that has been developed especially for and operators do not want to be limited to service bulletin (SB) is agreed by Airbus.”
the EFW conversion programme. a lower payload,” says Schmid. The customer will have to apply to
On the ground the aircraft has a nose- The maximum weight variant is needed Airbus for the correct SB. EFW will then
down attitude, so it needs a powered to extract a maximum 60 tons gross incorporate the workscopes for the
loading system to allow cargo to travel up payload from feedstock aircraft. EFW’s modifications during the conversion
and down the gradient safely. Automating upgrade programme enables the aircraft to process. An example of this work could be
the system speeds up the loading procedure be raised to the highest weight variant. upgrading of the brakes or simply
and prevents tail-tipping the aircraft. “Sometimes the modification only changing the air pressure within the tyres.
Separating the main cargo deck and the requires a simple paperwork change, “The good news is that there is an
cockpit is a netted 9G barrier. Using a net although some changes do require upgrade programme available, and the cost
is lighter than a ridged barrier and less
affects the CofG of the aircraft.
Airbus aircraft typically have
standardised cockpits. By definition the fly-
by-wire aircraft uses the same software as
the Airbus freighter to improve the
handling of the aircraft.

Weight variants
For a freighter to optimise its cargo-
carrying ability, it is important to have the
highest possible MTOW and MZFW.
Different weight variants allow the
manufacturer to fine-tune an aircraft’s
design to best suit its mission. A high
MTOW will give the aircraft a longer
range or higher payload.
Passenger-configured A330-300s can
be split into early-production low gross
weight (LGW) and later-built high gross
weight (HGW) aircraft.
The earliest passenger A330-300 LGW
aircraft were built in 1992-1995, and are
identifiable by line numbers (L/N) 012 to
112. The highest achievable weights for
these aircraft are an MTOW up to
460,766lbs, and an MZFW up to
379,195lbs. It is not possible to upgrade
the weight limits further to an acceptable
level on this subsection of aircraft.
Other early passenger LGW aircraft
were manufactured up to 1998, from L/N
113 to 244. Possessing a slightly higher
weight certification, these aircraft can
achieve an MTOW of 480,608lbs, and an
MZFW of 379,195lbs. It is possible to
increase the weight of these aircraft to an
adequate level.
A330-300s produced from L/N 256,
built in 1999 and beyond are defined as
HGW. These passenger aircraft can be
certified to an MTOW of 513,677lbs and
reach an MZFW of 385,808lbs.
An MTOW option of 518,086lbs was
introduced from L/N 1,276 in 2012. It is
possible to upgrade passenger aircraft built
from 2004 to this level, but the
modification reduces MZFW to
318,400lbs. This in turn will reduce
payload.
Airbus recently introduced a newer
weight variant (WV) that increases
MTOW to 524,700lbs and 533,519lbs.
Yet the availability and high feedstock
price for this newer type will negate the
benefit of the extra payload.
“The max weight variant is a very

ISSUE NO. 124 • JUNE/JULY 2019 AIRCRAFT COMMERCE

58 I FREIGHT BUSINESS
Aircraft with the highest MTOW are prime
candidates for conversion. Currently leasing 20
aircraft is retail giant Amazon.

sisterships are usually fitted out to a

uniform specification, component
configuration, and airworthiness directive
(AD) and service bulletin (SB) status. The
inherent commonality saves a buyer from
re-investing in expensive avionics and
equipment during the conversion phase.
Standardised aircraft that have the
same make and model of engine and
systems will reduce maintenance costs,
lower spare part inventory and lessen the
need for additional personnel type ratings.

Conversion candidates: 767

There are 360 767-300ERs in active
can be discussed,” says Schmid. engine maintenance. passenger aircraft fleet equipped as follows:
It is possible to buy and convert a The CF6-80C2 and PW4000-94 equip 222 with different variants of the CF6-
lower WV aircraft to reduce operating the majority of the 767-300ER fleet. 80C2; 134 with different variants of the
costs. However operators like the flexibility Moreover, the two engines were also used PW4000-94; 11 with PW4052s; one with a
of the higher WV, because they may want on four other widebody types; including PW4056; 95 with PW4060s; 26 with
to carry a heavier cargo and not be limited. the 747-400, MD-11, and A300-600R. PW4062s; and five with RB211-524Hs.
Using a quick engine change kit (QEC) Age and accumulated FC are of
via an SB is a simpler alternative and particular importance for 767-300ER
Feedstock criteria makes it possible to substitute CF6-80C2 candidates. This relates to an ageing
The better candidates for freighter engines from A300-600/A310 and MD-11 structural AD that affects the aircraft.
conversion will have several characteristics. aircraft. For example, SB 72-1470 covers Recently several airworthiness
First, aircraft will be in the zone of swapping an MD-11 engine to a 767- directives (AD) have been issued against
convertibility when they are 15-20 years 300ER. the 767 for monitoring widespread fatigue
old. More specifically, the total Large numbers of these have been damage (WFD) on the aircraft. WFD can
accumulated FC will provide a better retired. This can result in large numbers of lead to terminating actions being required
indicator of an aircraft’s potential. Freight time-continued engines being available, to large sections of the airframe.
carriers will want to operate a converted making it possible for freight carriers to Introduced in February 2017, AD
aircraft for at least 10 years, and possibly avoid the expense of large engine 2016-25-07 requires the replacement of the
as many as 15-20. Most will have annual maintenance events. aft pressure bulkhead at Station 1582 of
utililsations of 600-900FC, depending on The situation is different for the A330- Section 48 of the fuselage with a new
style of operation and average route length 200/-300. These are exclusively powered improved one. This has to be done with all
and flight time. Aircraft can therefore be by the Rolls-Royce Trent 700, GE CF6- applicable related investigative and
expected to amass 6,000-9,000FC in a 10- 80E1, and PW4000-100. First, most are corrective actions.
year period. Ideally the total number of FC powered by the Trent 700. The lack of Compliance time for the action is
already accumulated at time of conversion, independent maintenance providers for the before the accumulation of 60,000FC, or
and those that could potentially be added Trent 700 means that freight operators are within 36 months of the effective date of
during subsequent freighter service will not likely to have to pay relatively high this AD, whichever occurs later, but no
be enough for the aircraft to reach the maintenance costs for the engines over the earlier than 37,500 total accumulated flight
threshold for a large maintenance long term. There are independent shops for cycles.
requirement, such as ageing aircraft the CF6-80E1 and PW4000-100, but these According to the Federal Aviation
inspections or a structural AD. Most 767- are limited in number. Administration the part cost is $646,899.
300ERs have operated at 5.0-7.0FH per Freight carriers and lessors will also Labour costs are estimated to be $130,985
FC, and so accumulated no more than look for aircraft with the same for 1,541 man-hours.
15,000FC by retirement at 15-20 years of specification and configuration. It is ideal “We can clear any SB or AD,” says
age by their primary operators. for candidates to have a good pedigree. Matalon. “On each aircraft conversion we
Engine choice is an important “Generally buyers do not want to take can resolve any maintenance issue on
consideration. The 767-300ER fleet is aircraft that have been with two or three behalf of the customer.”
divided between aircraft equipped with operators,” says Fortune. “Such aircraft Of the CF6-80C2-powered aircraft, 24
CF6-80C2, PW4000-94 and RB211-524H may not have been maintained properly, are in service with American Airlines. With
engines. Aircraft with RB211-524H which can mean more money needs to be an average FH:FC ratio of 6.0, these have
engines are unlikely freighter conversion spent on them.” been used on a long-haul network. The
candidates because of their scarcity, high It makes sense to source multiple oldest aircraft in the fleet is 26 years old,
OEW and lack of non-OEM support for aircraft from the same operator, because and the youngest 16 years old.

AIRCRAFT COMMERCE ISSUE NO. 124 • JUNE/JULY 2019

 59 I FREIGHT BUSINESS
In 2018 Bedek completed 17 767-300ER
conversions. Its biggest customers are large
lessors.

Of the American Airlines fleet, 16

aircraft were built from 1998 to 2003 and
have accumulated 57,861-102,273FH and
9,321–12,786FC. As most of this fleet is
15-20 years old, it is ideal for conversion.
It is reported that because of the ‘good
quality’ of American Airlines’ feedstock,
The Air Transport Services Group (ATSG),
has agreed with Jetran to buy 20 of these
aircraft over the next three years.
ATSG is planning to convert six in
2019, nine in 2020 and five in 2021.

CF6-80C2-powered fleet
The remaining in-service passenger- acquisitions will trigger the sale of the
configured fleets of CF6-80C2-equipped older batch of 767-300ERs. PW4000-94-powered fleet
aircraft are examined. Important criteria The LATAM Group’s 33 aircraft Four PW4000-94 series sub-variants
are fleet size and age, accumulated FH and mainly operate out of Brazil and the are available to power the 767-300ER. The
FC, and engine variant. The operator’s surrounding areas. They fly average sectors last two digits in the engines’ nomenclature
future fleet plans are also influential. of 5.3-6.7FH, so they have a good FH:FC relate to the maximum thrust rating each
The biggest CF6-80C2-powered fleets ratio. Two aircraft were manufactured in variant can provide. The PW4052 can
are operated by ANA (24), JAL (28), 1998 and have completed 67,739FH and provide 52,000 lbs of thrust, and is the
LATAM Group (33), Delta Airlines (23), 84,532FH. The remaining fleet dates from lowest-rated variant of the PW 767-300ER
and Air Canada/Air Canada Rouge (19). 2006 to 2012. engines.
These total 126 units. Recently LATAM Cargo took The PW4062 has a thrust rating of
Delta Airlines operates three CF6- redelivery of a 767-300BCF and three 62,000 lbs. of thrust, and is the highest-
80C2-powered aircraft that are 30 years factory-built 767Fs. rated variant of the PW series of engines
old and have accumulated 21,403- LATAM’s freight operation means it is available for the 767-300ER.
22,202FC. Delta Airlines has a history of possible that the best candidates from the There are a total of 133 PW4000-94-
using the maximum amount of airline will be handed to LATAM Cargo to powered aircraft in the fleet. The largest
maintenance life from the airframe and convert. Yet because LATAM Airlines has fleets are operated by United (35), Delta
engines. It can be assumed that these 767- a large fleet of 767s, it is likely that many Airlines (30), and Air Canada Rouge (12).
300ERs will have little green time left of its aircraft will reach the open market. United Airlines has 11 aircraft with
when they are released on to the market. In addition to the three CMC, CF6 PW4052 engines, built in 1998-2000. They
Three young fleets that are operating aircraft, Delta Airlines operates 23 CF6 have accumulated 65,770-74,368FH and
CF6-80C2F-powered aircraft are Japan FADEC-equipped aircraft. These aircraft 14,054-16,900FC. Their FH:FC ratio is
Airlines (JAL), All Nippon Airways (ANA) were built in 1991-2001. Of these, 21 were 4.5.
and the LATAM Group. built in 1998-2001 and have completed United Airlines has 18 787s on order
The ANA fleet of 24 aircraft is seven to 74,537-80,329FH and 9,617-18,123FC; that will be delivered in 2019-2020.
21 years old. Of these, 10 are 15-20 years 12 aircraft built from 1999 to 2001 have a Euro Atlantic Airways operates a
old, and have accumulated 7,926- FH:FC ratio of about 7.8 hours. PW4056-powered 767-300ER built in
13,791FH and 2,200-3,947FC. The Condor operates seven units. The 2002. It has accumulated 56,211FH and
average FH:FC ratio is 3.0, so these oldest was built in 1994 and has 17,729FC with an FH:FC ratio of 3.17
aircraft will have been used on Japanese accumulated 16,355FC with a FH:FC ratio hours.
domestic and intra-Asia Pacific routes. of 6.0. The youngest aircraft in the With a fleet of 95 aircraft, the PW4060
ANA has ordered 13 787-9s and one German fleet is 18 years old and has is the most numerous sub-variant of the
787-10, to be delivered in 2019-2021. It is amassed 80,971FH and 10,924FC with a PW4000 in the 767-300ER fleet.
possible these new aircraft will signal the FH:FC ratio of 7.65. Delta Air Lines operates 30 PW4060-
retirement of some of ANA’s 767-300ERs. Icelandair and TUI UK both operate equipped aircraft. Built in 1990-1998, they
JAL’s fleet totals 28 aircraft, including four aircraft built in 1997-2000. have accumulated 92,859-130508FH and
11 built in 2002-2006, and 17 in 2007- Icelandair’s aircraft have an FH:FC ratio of 13,272-18,627FC. They have the highest
2011. The older aircraft have accumulated 5.3 and TUI UK’s 5.2. Icelandair’s aircraft accumulation of FH and FC in the
4,505-18,958FH and 1,332-5985FC. The have accumulated 71,029-98,688FH and PW4060 fleet. The FH:FC ratio is 6.9.
average FH:FC ratio is 3.0. 13,903-18,043FC, while TUI UK’s have Delta Air Lines has 12 A350s on order
JAL is taking deliveries of seven new 83,281-90,995FH and 14,211-17,675FC. that are due to be delivered in 2025-2026.
787s and 30 new A350s by 2020 and 2023 TUI, is expecting to take delivery of United Airlines operates 24 aircraft. Of
respectively. It is expected that these two 787-9s in 2019 and 2021. these, 21 were built in 1991-1993,

ISSUE NO. 124 • JUNE/JULY 2019 AIRCRAFT COMMERCE

60 I FREIGHT BUSINESS
ATSG is one of the worlds largest lessors of
converted 767 aircraft, and has recently
announced that it will acquire 20 767-300ERs
from American Airlines.

for 30 787s and 34 A350s that will be

completed by 2022.
Other CF6 A330-300 operators
include Aer Lingus (9), Delta (9), EVA Air
(9), Finnair (8) and Iberia (8). Turkish
Airlines operates 20 aircraft that entered
service in 2013-2016.
The PW4000-10 has two main
variants: the PW4168 rated at 68,000lbs
and the PW4170 rated at 70,000lbs. The
PW4168/70-equipped fleet has 19 aircraft
that are older than 15 years. Comprising
aircraft built in 1994-2004, this subsection
of the fleet includes Delta (8), Korean Air
(6) and Brussels Airline (2). Other aircraft
of this vintage are operated in small fleets.
Delta’s A330-300 fleet in the PW4168
accumulating 105,479-114,291FH and 56,406-75,864FH and 13,719-18,825FC; category have accumulated 65,552-
16,413-17,640FC. FH:FC ratio is 6.4. with an FH:FC ratio of 4.0. 68,085FH and 8,555-8922FC; an FH:FC
United operates three younger aircraft Ethiopian Airlines has 12 A350s on ratio of 4.5 hours. The youngest aircraft is
built in 2000-2001. They have order that will be fulfilled by 2022. 16 years old. Delta has 10 more aircraft in
accumulated 64,564-67,970FH and this category that were built in 2006-2007.
13,304-14,433FC; an FH:FC ratio of 4.9. PW4000-100-powered Korean Air
In 2017, United Airlines began Conversion candidates: A330 candidates over 15 years old have
upgrading 14 PW4060-powered 767- The A330 fleet comprises 1,179 accumulated 68,358-70,080FH and
300ERs with state-of-the-art business- passenger aircraft in service, split between 22,827-28,312 with an FH:FC ratio of 3.6.
focused interiors. The high cost of this 524 A330-200s, and 655 A330-300s. Korean Air has 30 orders for 787s that
interior upgrade makes it unlikely that The A330-200 fleet is further divided will be delivered in 2021-2024.
United will put these aircraft on the market between 150 CF6-80E1-powered aircraft, Malaysia Airlines operates 10
anytime soon. 86 PW4000-100-powered aircraft, and PW4170-powered aircraft, built in 2011-
Air Canada Rouge operates 10 288 Trent 772-powered aircraft. 2014. China Southern operates 16 aircraft
PW4060-powered aircraft. The oldest of The A330-300 fleet includes 122 CF6- built in 2013-2017.
these aircraft is 26 years old and has powered aircraft, 88 PW4000-100- Asiana Airlines has 15 aircraft built in
amassed 107,097FH and 19,790FC. The powered aircraft, and 445 Trent 768/772- 2004-2013. The oldest aircraft has
youngest of these aircraft was built in equipped aircraft. Entering service in 1998, accumulated 57,459FH and 18,753FC,
2003, and has 58,681FH and 11,125FC. the shorter A330-200 is younger than the with an FH:FC ratio of 3.0. Asiana has 21
Condor operates seven aircraft and A330-300 that entered service in 1994. A350s on order for 2019-2024.
Austrian six. Condor’s fleet was built in Both main series are still in production. The Trent 700 series engines powers
1991-1994 and has completed 117,161- The main A330-300 fleets that could 67% of the A330-300 fleet. Most of these
129,746FH and 16,720-19,273FC. Built in potentially provide conversion candidates were built after 2008, so are relatively new,
1991-2000, the average age of Austrian’s are analysed. but there are 28 Trent-powered aircraft
fleet is lower than Condor’s. The Austrian Of the A330-300 CF6-80E1-powered older than 15 years. These are operated by
aircraft have completed 86,732- fleet, the oldest aircraft are three Qantas Cathay Dragon (10), Cathay Pacific (3),
128,365FH and 11,125-19,158FC. Both units that are 16 years old. Lufthansa (7), Garuda Indonesia (6) and
Condor and Austrian aircraft have an Qantas operates 10 CF6-powered Air Transat (2).
average FH:FC ratio of about 7.0. aircraft that were built in 2003-2005. Most Trent-powered A330-300s are
El Al operates three aircraft. The two These aircraft have completed 58,263- less than 10 years old and operated in
youngest aircraft in the fleet are 19 and 21 66,252FH and 8,283-10,168FC with an medium and large fleets. These include:
years old. They have completed 31,189- FH:FC ratio averaging 6.9. Qantas has six Aeroflot (17), Air China (29), Air Asia X
50,888FH and 7,115-8415FC; the average 787s on order that are scheduled to be (20), Cathay Pacific (18), China Eastern
FH:FC ratio is 5.2. El Al is completing delivered in 2019-2020. (17), China Southern (10), Garuda
delivery of their 787 fleet of 16 aircraft. China Airlines operates 24 CF6- Indonesia (17), Hainan Airlines (22), Hong
PW4062-powered aircraft account for powered aircraft, of which 12 were built in Kong Airlines (10), Philippine Airlines (15),
26 units in the 767-300ER fleet. The oldest 2004-2006. These have accumulated Saudi (32), Singapore (18), Swiss (14),
aircraft was built in 1991 and the newest 38,384-44,113FH and 13,525-18,901FC Thai Air Asia X (10), Thai Airways
in 2013. These could be highly desirable with a FH:FC ratio of 2.4. International (15), Turkish Airlines (17)
conversion candidates. Of this fleet, 18 are Qatar Airways operates three aircraft and Virgin Atlantic Airways (10).
15-28 years old, including two Air Canada built in 2005 and four built in 2006. These
Rouge units and two Condor units. aircraft have accumulated 59,053- To download 100s of articles
Ethiopian Airlines operates six 64,658FH and 11,954-13,078FC at an like this, visit:
PW4062s built in 2000-2005. These have average FH:FC ratio of 5.2. It has orders www.aircraft-commerce.com

AIRCRAFT COMMERCE ISSUE NO. 124 • JUNE/JULY 2019